Mubadala Energy, OMV, PARCO to tap opportunities in sustainable fuels in Pakistan

Mubadala Energy has tied up with OMV Downstream (OMV) and Pak-Arab Refinery Limited (PARCO) to explore opportunities in sustainable fuels and feedstock production in Pakistan.

The companies will explore the possibility of pursuing projects in circular economy initiatives, including plastics production and recycling, sustainable fuels and feedstock as well as the development of synthetic oil and chemical products.

The collaboration builds on a well-established partnership between Mubadala Energy, OMV and PARCO.

The agreement also supports its recently launched sustainability strategy that pinpoints three key priorities: Creating a positive environmental impact, supporting responsible operations, and being a partner of choice.

Combining strengths

Mansoor Mohamed Al Hamed, Mubadala Energy CEO, commented: “We have set out a clear strategy to pursue new energy sectors and low carbon solutions in support of the energy transition. This agreement brings together existing partners to combine leading technology, energy transition expertise and market infrastructure to realize the potential of circular economy solutions, at scale. With the UAE’s commitment to net zero emissions, I am excited to see this collaboration contribute to these goals.”

Shahid Mahmood Khan, MD, PARCO, commented: “As the energy lifeline of the nation, we resolve to secure a sustainable energy future for the Country. Pakistan has immense potential to move towards environmentally friendly fuels. We are glad to collaborate with Mubadala Energy and OMV to accelerate energy transition in Pakistan. Their technology and expertise will play an instrumental role in exploring avenues for circular economy and sustainable fuels.”

Martijn van Koten, member of the OMV Executive Board and Executive Officer Fuels & Feedstock, said: “We are delighted to participate in this joint activity, which supports our sustainable business strategy. The sourcing of sustainable raw feedstock and plastic waste is key to our intention to expand sustainable fuel production and our ReOil technology. I am convinced that OMV, with its extensive know how in key sustainable technologies, can make a significant contribution to the success of this cooperation.”

In other news, in December, ADNOC and Mubadala Investment Company announced a transaction involving OMV.

Under the agreement, ADNOC will acquire a 24.9 per cent shareholding in OMV from Mubadala. Upon completion of the transaction, which is subject to certain closing conditions and regulatory approvals, ADNOC will own 24.9 per cent of OMV, Österreichische Beteiligungs AG (ÖBAG), an Austrian independent holding company, holding 31.5 per cent, with the remaining share capital in free float.

Read: Abu Dhabi’s ADNOC acquires 24.9% stake in OMV