Message from the Vice Chairman and CEO
The past year was marked by unexpected international circumstances. The war in Ukraine contributed to an unprecedented energy crisis which fueled inflationary forces and meaningfully hindered EU’s sustainable growth. These unforeseen disruptions highlighted that continuous adaptability is paramount for development and stability.
As a leading energy Group we acknowledge our responsibility and commitment to lead the way towards a sustainable future.
We have already embarked on one of the largest energy transition investment plans in Southeast Europe by investing in alternative fuel technologies and providing sustainable energy and mobility solutions.
The modernization of our refinery through digitalization and the development of new, state of the art units has consistently been a priority in our strategy. In 2022, we completed the construction of the new Naphtha reformer, which allows us to produce higher value products. We also announced the commissioning of a new propylene splitter unit, an important milestone towards the production of petrochemicals for the refinery.
For decades, Motor Oil and its subsidiaries have fueled the mobility for their customers. With this mindset, nrg continued to invest in its e-mobility platform (“Incharge”), reaching nearly 1,000 charging points in Greece within two years.
This year, we launched MORE (Motor Oil Renewable Energy), with the intention of developing a leading force in the renewable energy sector in Greece. In that context, the acquisition of Anemos RES (75%) from Ellaktor SA, complemented MORE’s existing asset base and created a renewable energy champion with a large production base and a broad development pipeline.
Circular economy and the production of alternative and renewable fuels comprise a key pillar of our energy transition strategy. LPC, operates for more than three decades one of the largest and most technologically advanced lubricant regeneration refineries in Europe. In 2022 we acquired VERD, a fully integrated producer of biodiesel from second generation waste-based feedstock in Greece. Later in the same year, we announced the acquisition of Thalis E.S., a company that specializes in the design, construction and operation of waste and wastewater management facilities and services.
In 2022, we achieved important milestones in our strategy to develop value-accretive, low-carbon hydrogen infrastructure. First, we proceeded with the establishment of Hellenic Hydrogen, a joint venture with PPC that intends to develop renewable hydrogen projects in Greece. Further, we made substantial progress towards the establishment of a low-carbon hydrogen hub at the refinery, as well as the development of a hydrogen valley in the wider region.
In our Group’s 50 year course, we have always been standing by our people and the surrounding communities. In this context we have committed to an extensive 5 year plan to support the greater Aghioi Theodoroi area.
Resilience, adaptability, agility, responsibility, and consistency will guide us into shaping and leading the new energy scene with an unwavering commitment to sustainable growth.
Yannis V. Vardinoyannis
Vice Chairman and CEO
Message from the Head of ESG
The energy crisis has curbed some of the momentum behind sustainability in the interest of energy security but the direction for Motor Oil Group remains the same: As the world faces new challenges, we must not lose sight of the significance of taking clear action on climate change and designing a sustainable energy transition. Motor Oil Group remains committed to a timely sustainable energy transition towards a more inclusive, effective, affordable and secure global energy system that provides solutions to global energy related challenges, while creating value for business and society, without compromising the balance of the energy triangle (Energy Security, Energy affordability, Environmental Sustainability). This is an ongoing process that requires a very careful redesign of our core business operations in order to meet our sustainability goals.
We have already set ESG targets including decarbonization aiming to absolute GHG emissions reduction (Scope 1&2) by 2030 and supporting a net zero target by 2050 (vs. 2021).
Motor oil Group has set a decarbonization journey considering all the risks and opportunities that energy transition entails. The implementation of its energy transition strategy is expected to materialize through a diversified, multi-energy portfolio which includes, among other things, carefully selected investments and projects in renewable and alternative energy sectors that will help us reach our targets.
More specifically in 2022, MORE added a portfolio with installed capacity of 493MW and more than 1.6GW of projects under development through the acquisition of the 75% of the Renewable Energy Sources Business of ELLAKTOR Group.
In 2022 Motor Oil invested in low carbon products through the acquisition of the ELIN VERD and PRASINO LADI which is the largest domestic collector of used cooking oil which can be used to produce second-generation biofuels. Furthermore, Motor Oil through Thalis Environmental Services S.A. enhanced its circular economy presence and entered into the waste management and energy utilization market by offering a wide range of integrated sustainable solutions in the management of solid materials and waste, water, and liquid waste treatment, saving resources, energy and use of RES in infrastructure.
On the projects side, the Carbon Capture & Storage Project (IRIS project), is expected to decrease the total carbon footprint of the refinery by 25% (~495,000 tonnes of CO2 captured per year) contributing significantly to the targets that have been set, and also lay the foundations for the production of e-fuels through the construction and operation of a new low-carbon synthetic methanol production unit. At the time of writing this report, the Innovation Fund of the European Union selected Motor Oil’s IRIS project for funding of €127 million, subject to the successful completion of the Grant Agreement Preparation process.
Furthermore, the Group has provided mobility solutions to customers for decades and currently aims to be at the forefront of electrification of mobility in Greece. In 2022 we installed almost 800 EV charging points with a goal of 4,000 by 2030.
With regards to the ESG performance, the Group has achieved several milestones in 2022 which are described in this report. Indicatively, in the Environmental pillar, the Group has reached € 964 million in Taxonomy aligned investments (Capex) while the total energy production from MORE’s operating capacity resulted in CO2 avoidance of 416,000 tonnes of CO2e (based on the avoided emissions calculator of IRENA). In the Social and Governance pillars the Group increased the rate of group’s performance evaluation review to 98.5% and trained almost 11,539 employees and contractors in Health & Safety issues. The Social product of the Group reached € 1.43 billion while the taxes (including the windfall tax) reached 590.2 million. Finally, the economic contribution to local communities reached € 64 million.
There are also significant developments from a legislative point of view that will have an impact on our reporting process. On 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force. This new directive modernises and strengthens the rules concerning the social and environmental information that companies must report, while there are numerous data-intensive disclosures within the European Sustainability Reporting Standards (ESRS) covering greenhouse gas emissions, energy, waste, water, recycling, and social metrics. Furthermore, CSRD requires a third-party assurance and external auditing. In addition the International Sustainability Standards Board (ISSB) has issued the IFRS Sustainability Disclosure Standards S1 and S2 to improve trust and confidence in company disclosures about sustainability to inform investment decisions. Since this development poses a significant regulatory risk, in our organization, we have already started to prepare and gradually incorporate the new European and International Standards in our
Sustainability reporting procedures.
In Motor Oil Group, we believe that the transition to sustainability and net zero requires good understanding of the upcoming challenges and commitment to create and capture a long term
competitive advantage.
Helena Athoussaki
Chief Sustainability Officer
