Mubadala signs MOU to explore opportunities in sustainable fuels
Under this agreement Mubadala Energy, OMV and PARCO will explore the possibility of pursuing projects in circular economy initiatives
Mubadala Energy, the Abu Dhabi-based international energy company, has announced the signing of a Memorandum of Understanding (MOU) with OMV Downstream Gmbh (OMV) and Pak-arab Refinery Limited (PARCO) to explore opportunities in sustainable fuels and feedstock production in Pakistan.
Under this agreement 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 and seeks to utilise cuting edge technologies while leveraging existing infrastructure and market access.
In line with Mubadala Energy’s strategy to pursue opportunities in new energy sectors and low carbon solutions, 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. Through the MOU the partners also hope to further support efforts to ensure energy security within key customer centers. Mubadala Energy manages Mubadala’s 30 per cent interest in PARCO, with OMV, the Austrian multinational integrated oil, gas and petrochemical company, holding 10 per cent, and the Government of Pakistan holding the remaining 60 per cent of PARCO’S shares.
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 realise 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.”
For OMV, the project supports the company’s net zero emissions targets and is line with a strategy to become a leading, innovative producer of sustainable fuels and feedstock. For PARCO, the agreement has the potential to position the company as an important player in the circular economy and deepen integration into the chemicals & materials industry, while proactively developing sustainable, low-carbon solutions that help diversify its business.
Shahid Mahmood Khan, Managing Director, 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.”