INA oil company considering bio-refinery and logistics center in Sisak

September 13, 2017

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INA oil company considering bio-refinery and logistics center in Sisak

The Croatian oil company INA is considering the possibility of transforming its refinery in the town of Sisak into a logistics center first and later into a bio-refinery by the year 2021 as recommended by the consulting firm Deloitte as the most profitable solution for the facility. Croatian media have reported that the solution can only be implemented if the Croatian government accepts the RED II directive on bio-fuels, proposed by the European Commission.

The INA management presented the recommendations from the Deloitte report to the company unions and management board along with the assessment that the best solution is to gradually shut down the current refinery, form a logistics center which would remain operational after the year 2021 and the gradual transformation of the refinery into a bio-refinery over the next three years.

INA hired Deloitte to draw up an analysis of the situation and recommend possible solutions for the refinery in Sisak early in 2017. The consulting firm said that the offered solution is the best possible one because the number of employees would drop and the facilities operating with losses over the past few years would be shut down.

Deloitte recommended that INA should transport semi-products between the refinery in Sisak and refinery in Rijeka to make the best possible use of facilities in both. The Rijeka refinery is due to undergo renovation and repairs in 2018. The Sisak refinery would continue producing some products which would ease the burden on the facility in Rijeka where facilities would be constructed to treat surplus oil.

The INA unions are not accepting any solution which would lead to the loss of jobs, regardless of the financial losses.

Expensive project requiring partners

INA would have to invest between USD 160 and 220 million  into the construction of facilities for the production of bio-ethanol in Sisak, with the size of the investment depending on the selected technology. The bio-refinery would employ some 200 people and another 800 would be employed to grow industrial plants for bio-ethanol production.

According to INA figures, the refinery in Sisak reported losses of EUR 26 million in 2016.

INA management board Chairman Zoltan Aldott told Croatian media that the company is working on a project to produce bio-fuel but that it was still experimental, adding that it is an expensive project requiring partners.

Aldott said that the Deloitte report will be published only after the shareholders – the Croatian government and MOL oil company, reach an agreement on the future of the Sisak refinery.