OMV will continue with Austrian Hydrogen Project alone after Masdar's exit

Austrian oil-and-gas group OMV plans to continue its planned hydrogen project in Austria without its Abu Dhabi partner, after the state-owned renewable energy firm Masdar abruptly 'withdrew' from the venture.

The partnership that was announced in November of last year has been reversed. Masdar was supposed to invest several hundred millions of euros.

OMV said that the withdrawal of OMV would not have any impact on the project, which has a cost estimate of?around EUR600 million ($689 millions) and is still largely funded. The European Investment Bank has already committed EUR450 million in loan funding, and Austria has said it will provide public funding.

OMV, according to the Salzburger Nachrichten who broke the story, said that Masdar made its decision due to changes in Abu Dhabi's strategic environment. OMV didn't provide any further details. Masdar did not respond to a request for comment.

The 140 megawatt electrolysis plant is expected to be operational by 2027, and produce up to 23 000 tonnes of green hydrogen. It will be the biggest of its kind in Austria and one of five in Europe.

OMV has close ties to Abu Dhabi. ADNOC, the state-owned oil company, owns 24.9% of the Austrian Energy Company. The two companies merged their chemical businesses under Borouge International to create the world's 4th largest plastics producer.

(source: Reuters)