By Giulia Petroni

Austria's OMV AG (OMV.VI) said Thursday it signed an agreement with AustroCel Hallein GmbH to supply advanced bioethanol in an effort to meet sustainability goals.

AustroCel is investing 42 million euros ($46 million) in the construction of the bioethanol plant.

"When completed, we should be able to replace around one percent of gasoline consumption in Austria and reduce CO2 emissions by approximately 50,000 tons," said AustroCel Chief Executive Joerg Harbring.

Advanced bioethanol is a second-generation biofuel whose components are derived from a sustainable resource base.

Construction work is underway in the city of Hallein and the first supplies of bioethanol are expected to leave the facility in early 2021, OMV said.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

October 03, 2019 05:08 ET (09:08 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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