petrom environmental management leading industry to resource … · 2011-12-03 · petrom,...

Petrom Environmental Management Leading Industry to Resource Efficiency

November, 2011

Developed by :HSSE - Environmental Management

PETROM, Petroleum Club, November 20112

As World Moves on…

Continued economicgrowth

Intensified globalcompetition for resources

Global power shift: from a unipolar to a multipolar world

Accelerating global demand

threaten the natural systems

that sustain us

EconomicDecreased stocks of natural

resources: pressure on water - food - energy

Increasing severe consequence of climate change

Increasing environmental pollution load

Environmental

Environmental regulations and governance: increasing fragmentation and convergence

PoliticalIncreasing divergence in

population trendsLiving in an urban worldDisease burden and risk of

new pandemics

Social

Accelerating technological change: racing into unknown

Technological

1. Source: EEA Outlook 2010


“Roadmap to a Resource Efficient Europe”“A Resource Efficient Europe” - Design of the Roadmap

Policy incentives to reward business investments in resource efficiency

New policies to phase out inefficient subsidies – shift taxation fromlabor to environmental impacts

Fiscal policies and instruments to support resource efficiency

Incentives to support consumer’s choice and producer’s action toresource efficiency

Phase out inefficient subsidies (e.g. tax reductions, exemptions) and increase taxes on:

- environmental impact/pollution - consumption of resources


Turning Waste into a Resource Life-cycle approach from design phase for wasteRecycling and re-use rates - criteria set as Producer’s ResponsibilityLandfilling gradually decreased close to zero

Disposal

Energy& product recovery

Recycling

Reuse

Prevent

Reduce

Most favored option

Least favored option


40% Europe’s Water is Wastedmeaning

40% Improvement Potential

Water abstraction target and allocations below 20% of available resourcesImproved efficiency measures:

- mandatory requirements for measuring devices- water re-use- reduction of leakages

Economic instruments to be implemented: - pricing- use of labeling, - certification schemes measuring water life-cycle impact

Reduce energy intensity of water treatmentsWater efficiency targetsUse of Blueprint by 2012

EU Water Roadmap by 2020


Europe’s Commitment to Energy Efficiency

► Energy Services Directive (2006/32/EC)

► Reduction of energy consumption by at least 9% over 9 years (2008-2016)

European Union

► Targets for Romania:

► GHG reduction by 21% for ETS sectors and GHG increase by max. 19% for non-ETS sectors

► Renewable share of 24% in final energy consumption, from 17.8% in 2005

► Reduce energy consumption by 13.5% by 2016 (1.5% per year)

Energy efficiency supports cutting GHG emissions, economic development, reduces energy imports, creates jobs, and reduces energy costs for population and business

Romania


-10%1

2013 EU ETS Legislation Brings Costs Pressure

1 Reduction vs. 20052 part of energy intense industry exposed to international competition

2008-2012 / 2nd trading period National Allocation Plan 100% free CO2 allocations based on historical emissions

2013-2020: ETS / 3rd trading period Free allocations based on benchmark granted to refining and

upstream due to “carbon-leakage” status2

Auction is the basic rule Free allocation for electricity production

based on Romania’s derogation

Non ETS:

ETS:

until 2020

-21%1

- 20%

“Fuels Quality Directive”6 % GHG reduction on product life cycle (binding)

4 % reduction (non binding )

Sustainability criteria for biofuels: minimum GHG reduction

Reporting required from 2011 / methodology not yet finalized

S:HSS:E


EU ETS 2013 Leading to CO2 Reduction

2005 202020132008

PHASE 1 PHASE 2 PHASE 3

CO

2ce

rtifi

cate

s

linear reduction-1.74% per year

-21%

National allocation plans based on historical emissions

EU wide allocation rulesbased on benchmarks

Benchmarks of CO2 allocations are based on energy performance of best players in the industry, at Europe’s level.


OMV Petrom: Leading Oil & Gas Player in SEE High Degree of Physical Integration

Exploration and Production

Refining and Marketing

Gas and Power

►4.6 mn t Group crude oil and NGL production

►5.2 bcm Group gas production

►832 mn boe Group proved reserves

Upstream integrated refining capacity

801 filling stations at Petrom Group level

4.16 mn t Petrom Group marketing sales

39% Romanian market share

4.9 bcm Group gas salesStrong position on the Romanian

gas market, covering all gas market segments

First power projects operational in 2011 (power plant Brazi and wind farm Dorobantu)

All figures as of December 2010; figures refer to Petrom Group, unless otherwise specified*Arpechim refinery to be divested by 2012 at the latest

Upstream and downstream activities

Upstream activities

Downstream activities


Petrom‘s Steps to Resource Efficiency

Investment in high-efficient Combined Cycle gas- fired power plant Brazi, 860 MW

New renewable energy in portfolio: Dorobantu Windfarm

Process optimizations, modernizations, investments to increase energy efficiency

Blending of bio fuels (FAME, bio-ethanol)

Energy savings in offices, buildings, Green IT

Energy Management Systems (ISO 16001) with targets on Group, business division & individual employee

Awareness campaigns and bonus system for ideas from employees on energy efficiency

Power plant Brazi

© VesasDorobantu Windpark

Thank You!

petrom environmental management leading industry to resource … · 2011-12-03 · petrom,...

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