19 Jan 2022 TÜPRAŞ İZMİR REFINERY WILL PLAY A CRITICAL ROLE IN COMPANY’S CLEAN ENERGY TRANSFORMATION
Tüpraş, the largest industrial company in Türkiye with the added value and revenue that it creates, announced its Strategic Transformation Plan to produce the energy of the future. The Company, which owns 4 refineries in Türkiye as one of them is in İzmir, will focus on Sustainable Refining, Biofuels, Zero-Carbon Electricity and Green Hydrogen in the near future. As part of its Strategic Transformation Plan, with an annual average investment of $350 million, Tüpraş aims to invest approximately $5 billion by 2035. While the İzmir refinery plays a critical role in the company’s transformation, Tüpraş will convert an existing unit in the İzmir refinery into a biofuel unit, with an investment of approximately 230 million dollars. Tüpraş’s future investments in İzmir Refinery are expected to make a significant contribution to the development of the clean energy and cleantech cluster in İzmir.
Pioneering the Turkish energy industry for 60 years, Tüpraş announced its Strategic Transformation Plan to produce the energy of the future. According to the Strategic Transformation Plan, Tüpraş aims to lead the transformation of Türkiye’s energy industry through investments in new areas to support its sustainability while managing existing assets to achieve sustainable profitable growth. Additionally, along with a balanced and diversified clean energy portfolio, Tüpraş aims to become a carbon-neutral company by reducing its emissions.
“Energy to the Future” is the motto of the new strategic plan which strives for a sustainable world and the balance of life. Tüpraş aims to fund this transformation by improving existing operations through investments in efficiency and in the production of higher value-added streams. The company initially plans to allocate the majority of its new energy investments to zero-carbon power required to establish an integrated business model with green hydrogen generation, and the rest of its investments in biofuels and electrolysis plants.
Tüpraş General Manager İbrahim Yelmenoğlu announced the Strategic Transformation Plan, which marks the beginning of a new era and a major milestone for Tüpraş. Emphasizing that the global climate crisis has become the single biggest challenge worldwide, Yelmenoğlu said: “We are moving forward with our transition journey towards a low carbon economy to tackle the climate crisis in conjunction with the vision set by Koç Holding. We have been working in this direction for a long time.” Yelmenoğlu added: “While planning for the future of Tüpraş, we have drawn a roadmap to transform our products and services to better respond to the expectations of all our stakeholders. As part of our Strategic Transformation Plan, we will be focusing on four business areas. These are Sustainable Refining, Biofuels, Zero-Carbon Electricity and Green Hydrogen. Energy needs are diversifying in line with changing consumer behaviors and needs. Our business plan reflects these changes and aims to meet the demand for new energy types. We have a long way to go and many challenges to overcome in the transition to clean energy. As part of its Strategic Transformation Plan, with an annual average investment of $350 million, Tüpraş aims to invest approximately $5 billion by 2035 and $10 billion by 2050 in total. Tüpraş is to set aside $50 million for venture capital investments until 2030 to capitalize on new technologies and business models in energy transformation
Tüpraş İzmir Refinery was brought into operation in 1972 with the aim of meeting Türkiye’s growing requirement for petroleum products. The refinery, which started production with an annual crude oil processing capacity of 3 million tons is now registered as having an annual refining capacity of 11.9 million tons following significant capacity increases and unit modernizations carried out over the years. While the number of employees is 1.448, The İzmir refinery is the only refinery in Türkiye to have a machine oil production complex, with a 400,000 tons/year capacity. A total of 6.0 million tons of products were sold from the İzmir Refinery in 2020, with 4.4 million tons of this amount sold domestically. İzmir Refinery will play a critical role in the company’s transformation and Tüpraş will convert an existing unit in the İzmir Refinery into a biofuel unit with an investment of approximately 230 million dollars.
Sources:
https://www.tupras.com.tr/en/press-releases?detay=press-relaese-112021
https://www.dunya.com/sirketler/tuprastan-stratejik-donusum-hamlesi-haberi-640739
