BAZAN Group, Israel’s largest refining and petrochemical conglomerate, is actively pursuing a comprehensive strategy to transition towards renewable energy and sustainable practices. This strategic shift is driven by the need to reduce environmental impact, align with global sustainability trends, and ensure long-term operational viability.
In July 2021, BazanGroup unveiled plans to become Israel’s leading supplier of renewable energy and alternative fuels. The company committed to investing $1.5 billion by 2030, focusing on three key areas:
- Green Polymers: BAZAN aims to produce 15% of its products as green polymers by 2025, with a target of 30% by 2030. This initiative involves incorporating sustainable materials into their product lines, reducing reliance on traditional petrochemical sources.
- Hydrogen Fuel Development: In December 2020, the company announced a $3.7 million project to develop hydrogen production, compression, and transportation technologies. The goal is to facilitate the introduction of hydrogen-fueled vehicles in Israel, positioning BAZAN as a key player in the emerging hydrogen economy.
- Environmental Innovation Lab: BAZAN, in collaboration with EDF Renewables and Johnson Matthey, established an environmental innovation lab in Haifa Bay. This lab focuses on cleantech innovation and environmental protection, aiming to develop and implement technologies that minimize environmental impact.
Financial Performance and Strategic Outlook
Despite the challenges posed by global economic conditions and regional conflicts, BAZAN Group has demonstrated resilience. In the third quarter of 2024, the company reported an adjusted consolidated EBITDA of $70 million, with a refining margin of $8.9 per barrel. The cumulative net profit since the beginning of the year stands at approximately $95 million, reflecting the company’s robust financial health.
Chairman Moshe Kaplinsky emphasized the importance of strategic planning for Israel’s long-term energy needs, highlighting BAZAN’s role in ensuring a continuous energy supply. CEO Asaf Almagor noted that while the refining sector remains a stable foundation, the company is actively investing in sustainable technologies to adapt to evolving market demands.
Future of Bazan Group
BAZAN Group’s future strategy is centred on innovation, sustainability, and strategic partnerships. By investing in green technologies, developing alternative fuels, and fostering environmental innovation, BAZAN aims to lead the transition towards a more sustainable energy landscape in Israel and beyond.
