In our company, we continually improve ecological performances of our business processes, develop ecological awareness of our employees, and promote the application of best available methods and technologies through investment projects. Following our “Green Agenda”, we have been contributing to environmental conservation and reduction of pollutant emissions over years.
In an effort to meet our “green” objectives, we focus on three major directions – implementation of environmental projects, launching business initiatives with significant environmental benefits, and participation in environmental protection campaigns. Since 2009, we have invested over 900 million euro in environmental projects and business initiatives that have significantly contributed to improving the ecological image of our country, with over 140 million euro invested in “purely” environmental initiatives.
In 2024, we continued to invest in environmental projects and projects with an environmental impact in order to meet the strictest requirements in the field of environmental protection. Last year, 1.06 billion dinars were invested in the implementation of environmental projects. It should be noted that these allocations are significantly higher if investments in technologies are also taken into account, the application of which contributes to the reduction of harmful impacts on the environment.
Environmental Protection Strategy
Our principal objectives relating to environmental protection focus on compliance with all regulations in the field of air, water and soil, in particular, the lowest possible waste generation and higher level or recycling and disposal of generated waste, as well as preserving biodiversity in operational sites. Additionally, we are committed to reducing the climate change effects. In 2021, we developed the Environmental Protection Strategy until 2030. We have conducted the analysis of regulations of the Republic of Serbia and European Union, defined long-term objectives to reduce negative environmental effects, selected the projects, and estimated the investment required.
A significant part of our environmental Protection Strategy is dedicated to managing the greenhouse gas (GHG) emissions. The practice of GHG emissions monitoring and quarterly reporting was introduced in 2022. Our company practices monitoring and reporting on Scope 1 (direct GHG emissions), Scope 2 (energy indirect GHG emissions), while, in 2023, the scope of reporting was extended to cover, for the first time, the complex Scope 3 calculations (other indirect GHG emissions that occur upstream and downstream of the organisation’s activities – from product purchasing, resource procurement, sale of products (petroleum products), investments, etc.).
In early 2024, the Republic of Serbia enacted the Regulation on Greenhouse Gas Monitoring and Reporting (Official Gazette of the Republic of Serbia, No. 118/2023) which defines in more detail the method of monitoring, calculating and verifying GHG emissions as well as the obligation for operators to issue GHG emission permits for their facilities. The aim is to reduce these emissions from the industrial sector in the long term and to accelerate the decarbonisation of the economy, which is one of the important pillars of our green agenda.
As a confirmation of the quality of the activities implemented so far and the timely fulfilment of legal obligations in the field of climate change management, the Ministry of Environmental Protection has issued a Decision on issuing a permit for greenhouse gas emissions for four of our company’s facilities: Novi Sad Petroleum Products Warehouse – Power Plant, Pančevo Oil Refinery, Preparation and transportation of oil and gas Unit in Elemir and HIP Petrohemija (a permit is expected for FSK Elemir). Our company, i.e. the facilities for which permits have been issued, are obliged to monitor GHG emissions, and then to prepare a GHG Emissions Report, which must be verified by an independent verifier.
In the field of waste management, we signed frame agreements with authorised waste disposal operators for the period 2024-2026, covering the services of collection, transport and treatment of waste generated by NIS.
In our company, legal obligations related to the payment of environmental protection fees are regularly monitored and settled. During 2024, 309.1 million dinars were allocated for fees and charges.
Pančevo Refinery Revamp
The major share of environmental investments has been made in Pančevo Oil Refinery, one of the leading contemporary refineries in this part of Europe. The refinery modernisation, which started in 2009, was wrapped up with the construction of two state-of-the-art units, the operation of which, brought about both financial and ecological benefits. Commissioning of the MHC/DHT complex in November 2012 facilitated fuel production to highest international standards, in particular fuel with sulphur content under 10 ppm. The procedure of the IPPC licence issuance for our refinery was completed, as the first energy generation unit in Serbia to be granted the integrated IPPC licence from the competent state authorities, confirming compliance of its production processes with the highest local and European environmental standards.
The second stage of refinery modernisation was concluded with start-up of the Delayed Coking Unit in November 2020, enabling production of larger amounts of high-quality fuels and expanding the product portfolio to include petroleum coke. The environmental effects of this contemporary unit are no less significant, given that it helped reduce the Refinery’s SO2 emissions by 98.8 per cent, dust by over 50 per cent, and nitrogen oxide by nearly 10 per cent. We also completed reconstruction and modernisation of the FCC complex, leading to a reduction of dust emissions, modernisation of tank truck and tank car loading terminals, when the environmentally-friendly system of tank loading was introduced in the Refinery, and lower demand for water withdrawal from the Danube.
In 2024, the Pančevo Oil Refinery received a new integrated IPPC permit, confirming that the production process at the Refinery is in line with the highest domestic and European standards in the field of environmental protection. The Refinery received its first integrated permit in 2017, making it the first energy plant in Serbia to receive an integrated pollution prevention and control permit. The new integrated permit also covers the “Bottom-of-the-Barrel” complex.
Last year, a planned overhaul was carried out, the most complex in the history of the Refinery. The reliability of the plant’s operation was increased, energy efficiency and environmental management were improved.
”Green” Projects on Oil Fields and Petrol Stations
We implement significant environmental projects in other business areas as well. In the Exploration and Production Block, in 2010, we put Novo Miloševo waste mud landfill into operation, intended for permanent and safe disposal of mud material (non-hazardous waste). Moreover, the “Dry Locations” project allowed mud recirculation, i.e. the amount of mud fluid was reduced, and thereby the amount of waste mud by 10-15 per cent. The waste well cuttings are disposed in metal containers, thus preventing soil and groundwater pollution. Additionally, the total area of over 16 ha has been restored to agricultural land.
The Exploration and Production Block also includes the Amine Unit at Elemir, in which we invested around 30 million Euro. The key effects of this project include improving the quality and produced amounts of the domestic natural gas. It also encompasses an environmental component, given that its method of refining completely prevents air emissions of carbon-dioxide, and consequently helps reduce the “greenhouse” effect. This is possible due to the HIPACT (High Pressure Acid Gas Capture Technology), which is among the most efficient gas treatment methods. Furthermore, on Ostrovo gas field, we have a possibility to produce compressed natural gas that has industry application and replaces liquid fuels, thus reducing pollutant emissions from industrial boilers, combustion chambers and furnaces.
In addition, a number of water, soil and air protection projects have been implemented in the Sales and Distribution Block. 396 separators, 9 biological devices, and 630 piezometers have been installed to ensure underground water quality control. All petrol stations constructed or fully reconstructed after 2006 are equipped with subsurface double-shell tanks, and all petrol stations have a condensate return system used during tank truck unloading into petrol stations’ subsurface tanks, as well as a phase II gasoline vapor recovery system at all reconstructed and newly built stations. The oil derivatives warehouse in the city of Požega and the oil and LPG warehouse in the city of Niš have Vapor Recovery Units – systems for recovering gasoline vapor at the warehouses. Retail sale of compressed natural gas, often called the fuel of the future due to its characteristics, is in the development stage at our petrol station. In addition, eight company’s motorway retail facilities in Serbia are equipped with electric vehicle charging stations. The Sales and Distribution Block has disposed of 22.434,2 t of historical waste to date. All petrol stations are furnished with packaging waste sorting equipment.
Key Steps in Energy Area
Having diversified our activities, as of 2013, we have excelled in the field of energy, specifically electricity generation and trading. As part of non-commercial gas monetization programme, we have constructed mini power plants on eight oil and gas fields in Serbia, with a total maximum power 14 MW. These power plants, in which we invested around 20 million euro, generate heat and electricity from gas, which previously used to be flared due to its poor quality (high content of carbon dioxide and nitrogen). As a responsible company, we have increased the efficiency of the electricity generation process at these cogenerators and reduced the emission of harmful gases into the atmosphere. We have started electricity generation from gas at Jimbolia well in Romania, and the kilowatt-hours produced by this unit are traded on the Romanian market.
In 2022, we started generating electricity at TE-TO Pančevo (CCPP), as a joint venture. The project is worth 196 million Euro, and the installed electric power of the unit is 189 MW. The envisaged electricity generated on an annual basis amounts to around 1,400 GWh. TE-TO Pančevo is the first gas and steam turbine power plant in Serbia designed for combined electricity and heat generation, fired by natural gas that is more environmentally-friendly than other fossil fuels. This power plant, whose technology is currently the best in terms of energy efficiency and environment, generates heat for the purposes of Pančevo Oil Refinery, while generated electricity is delivered into the power electric system of Serbia.
In 2022, we launched the project of photovoltaic power station construction at our petrol stations in Serbia, leading to both financial and positive environmental effects. The major share of generated electricity, along with the power distribution network, will be used for the purposes of petrol stations themselves. Up to the present, we have commissioned 45 power plants at our petrol stations. The total expected electricity generation using these 45 solar power plants is 1600 MWh annually, out of which 1500 MWh will be consumed by petrol stations and around 100 MWh will be delivered to the distribution network, including that the reduction of carbon-dioxide emissions is estimated to over 1700 tons annually. This successful project will continue in 2025 with the construction of solar power plants at an additional 30 petrol stations, with an annual production of around 1,100 MWh. Starting next year, the company will have clean electricity production of around 2,600 MWh per year at almost a quarter of its petrol stations in Serbia.
We have continued with the construction of solar power plants at other company facilities. In the Jazak Drinking Water Production Plant, a solar photovoltaic power plant with a total capacity of 620 kWp was put into operation in 2024. This is the first power plant of higher capacity in NIS, and also the first combined power plant consisting of three photovoltaic fields arranged on the ground and on the roof of the factory. The electricity produced with the help of solar panels at the “Jazak” factory will be used for the needs of the Plant itself, with the placement of occasional surplus electricity into the distribution grid, given that the Plant has the status of a buyer-producer.
A solar power plant with a total capacity of 610 kWp, or 550 kW of connected power to the grid, has been built and put into operation on the roofs of five buildings within the Pančevo Oil Refinery. The expected annual production of the power plant is 656 MWh. The solar power plant consists of 1053 photovoltaic panels with an individual capacity of 580 Wp and 13 inverters with a total nominal capacity of 500 kW. The produced electricity will be used for the needs of the Refinery. It is expected that an annual reduction in carbon dioxide emissions of around 700 tons will be achieved.
In addition to the above, solar power plants were also put into operation at the NIS Office Building on Arse Teodorovića Street in Novi Sad and rooftop power plants at the oil derivatives warehouse in Novi Sad. Further development of this project is planned at our retail facilities, as well as at other locations within the company.
We are also developing electricity trading. We currently hold a license for electricity trading in Serbia, Montenegro, Romania, Bosnia and Herzegovina, Slovenia, Hungary and Bulgaria. We trade on the electricity exchange in Serbia and Romania.
In addition, our company pays great attention to energy efficiency. The program of measures to reduce energy consumption and increase energy efficiency in 2024 achieved an energy saving effect of 21,678 t.e. From 2012 to 2024, NIS achieved an overall increase in energy efficiency by 32% (EII), which also contributes to a more rational use of resources and environmental protection.
During the third quarter of 2022, we formed the Energy Block within the company, whose task is, among other things, to accelerate NIS’s energy transition and the decarbonisation process.
Environmental Initiatives in Cooperation with the Community
Some significant initiatives related to environment and energy efficiency have been implemented with community engagement. Last year, within the “Common Cause Community” Social Responsibility Programme, we chose 40 projects of public institutions were selected, which were given the opportunity to contribute to the use of the Sun’s energy potential in the production of green energy by building solar power plants on their facilities. The cycle is implemented under the slogan “Together for Green Energy”, and we are investing 144.5 million dinars in the implementation of the selected projects in 13 cities and municipalities covered by the program.
In order to provide an incentive for the use of renewable energy sources and the production of green energy, as well as the rationalization of energy consumption and the creation of an environmentally responsible environment, we are the first company in our country to independently implement and finance projects for the construction of solar power plants on the facilities of institutions operating in various areas of essential importance for society. Our institutional partners in this program cycle are the Ministry of Mining and Energy and the Ministry of Environmental Protection of the Republic of Serbia.
Contribution of NIS Volunteer Club
Our employees also partake in environmental campaigns. NIS Volunteer Club runs campaigns of cleaning and landscaping the riverbanks and lakeshores, outing spots and public spaces, tree planting, and educating youngest society members on the importance of environmental protection. In 2024, NIS volunteers participated in various environmental initiatives such as the landscaping and cleaning of the Officers’ Beach in Novi Sad, as well as the planting of 100 ornamental tree seedlings in a public area in Kikinda. The traditional, fourth in a row, internal volunteer competition was also held, which was also focused on environmental protection. Under the slogan “Change, go green, be (someone) eco”, the company’s volunteers greened and equipped selected schools in Bashaid and Sečanj and preschools in Gajdobra and Nova Varoš with solar benches and chargers, composters, recycling presses and other ecological solutions.
The Club’s volunteer activities are centred on the needs of society, especially citizens in the local communities in which the company operates the most
See morePlans and New Projects
It should be noted that new projects to further improve the ecological image of Serbia are underway. In the upcoming period, the projects related to energy efficiency improvement, renewable energy sources, utilization of higher-quality and environmentally cleaner fuels (natural gas), and researching the possibilities for CO2 separation and storage will be intensified. It has been forecast that, by 2030, one half of our company’s electricity consumption will originate from renewable energy sources. In this regard, NIS and its partners are continuing the implementation of the Plandište wind farm project, which involves the construction of a wind power plant at the location of the Plandište municipality in the South Banat administrative district.
The implementation of the Green Agenda will remain one of the priorities in our company in the forthcoming period.
