Only a few minutes stroll from a metro station within the northeast nook of Vienna, it’s possible you’ll suppose that you simply had been in Texas: a properly -boring platform over 130 toes of tall stanks over open land.
As an alternative of oil, nevertheless, the wells will pump practically 1.7 million gallons a day sizzling water from deep underground. Initially, the warmth of the water will probably be used to warmth 20,000 households within the Austrian capital. It can then be pumped again under the floor.
This geothermal vitality will scale back the consumption of pure fuel within the metropolis – an essential consideration in Europe, not simply because it would scale back carbon dioxide emissions. OMV, a Vienna -based venture -controlling firm, is attempting to interrupt the lengthy -standing Russia dependence on fuel, insisting on offering new vitality sources.
“It is a new chapter for us,” mentioned OMV CEO Alfred Stern. For the primary time in six many years, “We now not have Russian fuel in our portfolio.”
“Austria’s dependence on Russia fuel was extraordinarily excessive,” typically touching 90 %, mentioned An-Sofia Corbo, a worldwide scientific scientist on the College of World Vitality Coverage Heart.
Efforts to separate Russian fuel and strengthen Austria’s vitality provide got here as US and Russian officers met this week to attempt to finish the conflict in Ukraine. Throughout the conversations, Kiril Dmitriev, who heads Russia’s sovereign fund, mentioned Restoration of business connections with Western corporations together with oil producersS
Austria was among the many first European nations to started importing Russian fuel in 1968. Within the years, intensive enterprise and private connections have been growing. Generations of European and Russian leaders “have instructed the story of how dependable and good all that is and the way a lot mutually useful,” says Georg Zahman, a senior affiliate in Brugel, a analysis establishment primarily based in Brussels.
Till lately, OMV, whose predecessor is ruled by the Soviets after World Struggle II, claims that there is no such thing as a alternative however to adjust to a big fuel import contract it has concluded in 2006 with GAZPROM, the Russian fuel monopoly.
However in December, Stern terminated the settlement, which was because of proceed till 2040 in an announcement, OMV cited Gazprom for “a number of violations of contractual obligations”.
OMV additionally mentioned in November that it has gained an arbitration ruling of 230 million euros (about $ 242 million) in opposition to GAZPROM, which is utilized to previous fuel invoices.
“It is a form of turning level during which we’re heading to new horizons,” mentioned Mr. Stern.
Austria as a complete appears to have It has largely stopped buying Russian gasS The pipeline that fed Austria by Ukraine and Slovakia stopped flowing earlier this yr.
OMV says he has ready for greater than two years for that second. It’s serving to by being a big firm with 24,000 staff and a big enterprise for gross sales and fuel buying and selling, which represents about one -third of the Austrian procuring market. In 2024, OMV reported a corrected revenue of 5.1 million euros (about $ 5.3 million) at $ 34 billion (roughly $ 36 billion) gross sales.
Because the conflict rages in Ukraine, OMV fuel managers shift the supply traces, primarily by Germany. Stern mentioned that OMV already carries fuel pipelines from Norway, the place OMV has manufacturing amenities.
The corporate has additionally supplied the capability for liquefied pure fuel provides in a big pure fuel terminal in Rotterdam, the Netherlands referred to as the Gate, and has signed perennial contracts with BP and Cheniere Vitality, a big US provider.
The association of those alternate options to Russian fuel is pricey, says OMV, though the Austrian authorities, which owns 31 % of OMV, has contributed a few of the prices. The Nationwide Petroleum Firm at Abu Dhabi additionally owns 25 % of OMV.
The modified vitality image in Europe has made the oil manufacturing expertise embedded in an organization like OMV extra treasured. Austria has a long-established oil and fuel trade, principally managed by OMV. About 1000 wells vary from about 1500 sq. miles principally flat land, straightforward driving from Vienna.
On the roads on this area the blue and inexperienced jacks nod as mechanical livestock within the fields. Within the rural city of Gänserndorf, the Heart for Innovation and Know-how with Trendy Black Exhibition Tower, storing specialties specialists equivalent to drilling a properly -to -side or torn out extra properly oil with the assistance of polymers.
Close to a metropolis referred to as Wittau, OMV is making ready to develop what it says has been the biggest fuel discover in Austria for 40 years. Henrik Tosier, OMV Common Supervisor for the examine and manufacturing of Austria, mentioned the invention may improve the modest manufacturing of OMV fuel in Austria about 50 % – or extra if the examine is escaped close by.
OMV specialists additionally perceive their geology of the geothermal experiment close to Vienna, the place the platform is a boring gap practically two miles deep right into a porous rock, pierced in sizzling water, which is accumulating in an historic riverbed 16 million years in the past, mentioned Nicky Knezeevic, geologist S
Though the venture pumps sizzling water for heating operations managed by the communal Wien Energie, the required experience is comparable to what’s wanted to extract oil.
“Drilling is drilling,” says Bernhard Novotni, venture director.
The largest cost can come to Romania, the place OMV Petrom, a subsidiary, is making ready to develop a big detection of fuel within the Black Sea referred to as Neptun Deep. If Successful, should cement Romania’s position As the biggest fuel producer within the European Union, it allows the export of “hungry fuel” industrial Heartland, together with Austria, mentioned Ross McGavin, an analyst at a Wooden Mackenzie, a consulting agency.
Romania will be the future, however what prevents Austria from freezing this winter are the massive shares of saved fuel within the nation. OMV maintains a lot of those reserves – a few quarter of Austria’s annual consumption – pumps underground into porous rocks. Typically, Austria can retailer fuel for greater than a yr.
In an interview on the management middle of one in every of these amenities close to Schoenkirchen, Werner Shildknecht, supervisor of the OMV division, mentioned his compressors had been making ready to “present fuel to Vienna within the morning” in chilly days. On heat days, the flows are reverse, including to the shares.
This winter was extra chilly than the earlier two, rising the strain on the fuel markets. Like a lot of Europe, Austria responded by burning the saved fuel. In January, storage was the principle supply of fuel in Austria, mentioned Natasha Fielding, head of the European fuel pricing at Argus Media, a analysis agency.
Europe and Austria pay a agency worth to restrict Russian fuel. Though European costs might not have reached astronomical ranges since 2022, they’ve lately reached two -year maximums. Austria pays much more, reflecting fuel prices throughout borders, primarily by Germany.
D -Stern, the OMV chief, mentioned the chilly climate was good for the Austrian financial system, citing higher snowboarding circumstances, prime attraction for vacationers. He added that the worth leap in 2022 was tough for patrons and possibly led to a “fixed discount” of fuel demand.
Stern mentioned that the best way to cut back costs is for Europe to amass extra vitality sources each at dwelling and overseas.
President Trump’s efforts to settle the battle in Ukraine supply one other potential path to extra deliveries. The vitality trade is starting to debate the opportunity of resuming Russian fuel flows in Europe if hearth is reached.
Even modest portions of Russian fuel will “exert appreciable strain from the European fuel market,” writes in Eurosian Henning Gloytein analyst of Eurasia Group, a political danger firm in a e-newsletter.
Mr. Stern sounded skeptical of the resumption of enterprise with Russia. “There isn’t any regulation in opposition to Russia fuel,” he mentioned, however “the unreliability of provide by Gazprom was now not acceptable.”
