European oil refineries are forced to invest in green projects to stay competitive.
This is according to Reuters.
Under pressure from environmental regulations and competition from modern global oil refineries, European oil refineries are trying to increase production of environmentally friendly products, such as green aviation fuel and biofuel, to meet regulatory demand for such products.
“The regulatory environment no longer simply tells us what we can do. Rather, it tells us who we need to become in order to survive in this market. It's like a business model for us,” said Lukasz Strupczewski, executive director of crude oil supply at PKN Orlen.
In particular, modern competitors in Asia, the Middle East, and Africa have led to the closure of plants in Europe, oil refining industry executives said on Wednesday.
“I think we are all fighting not to close down,” said Essar managing partner Tony Fountain.
According to Fountain, Essar plans to invest in the construction of a large blue hydrogen production plant in the UK. The company has also received government support for the construction of a sustainable aviation fuel (SAF) plant in Stanlow, UK, this year.
Meanwhile, PKN Orlen is seeking to increase investment in advanced biofuel production capacity to help meet demand for such products in the European Union.
Fountain said government support is important if the authorities want to prevent the UK from becoming overly dependent on imports in the event of a further wave of refinery closures.
Last month, the UK froze the development of a large oil field owned by a Norwegian company due to environmental requirements. The project is estimated to cost $3.8 billion.
Experts report that the project has now been suspended due to non-compliance with environmental standards. During an inspection of the construction site, equipment was found that would emit excessive greenhouse gases and toxic substances.
