2022 was a milestone year for HELLENiQ ENERGY, as the first phase of the implementation of the strategic plan “Vision 2025” was successfully completed and is already leading us to a new dynamic era focused on sustainable development. The modernisation of the governance framework, the successful completion of the corporate restructuring, the redefinition of priorities with a focus on green energy, as well as the change of corporate identity and the renaming of the Group, accelerated our progress towards the achievement of the business objectives we have set.
At the same time, we dealt in a substantial way with the consequences of the global energy crisis, which intensified after the Russian invasion of Ukraine. We remained a stable pillar for the energy security of the countries in which we operate: leveraging the flexibility provided by our modern refineries to process various types of crude oil, we ensured smooth market supply.
On an operational level, HELLENiQ ENERGY recorded the highest results in its history, due to the international environment, yet also the strategic choices that were made, in conjunction with the valuable effort made by its people.
HELLENiQ ENERGY is leading the effort for green growth and energy transition in the wider region of South East Europe, implementing “Vision 2025” rapidly. It is a comprehensive and ambitious plan, which incorporates all the necessary actions to address current challenges and secures the Group’s future. The aim is to transform the Group from an oil company into an organisation that operates across the energy spectrum, adopting ESG criteria in its business strategy and capital allocation while drastically reducing its environmental footprint.
With this plan, we are transforming ourselves into a dynamic Group producing and trading all modern forms of energy, while developing new business activities, with an emphasis on renewable energy sources.
After 64 long years of success, showing strong growth and providing substantial support to the Greek economy and society, the Group’s new corporate identity further reinforced our will to contribute to shaping a cleaner and more sustainable future for all. The corporate name “HELLENiQ ENERGY” reflects our will to embrace the future of “smart” energy, alternative sources and lowcarbon economy.
With targeted investments and a comprehensive action plan, we are ensuring our successful transition to a new production and development model. We are responding to the challenges of the climate crisis and energy transformation, incorporating innovations, and harnessing new technologies and advanced know-how. Within a short period of time, the benefits of the new business strategy have already become visible, allowing a more dynamic growth of the Group. In an ever-changing and competitive environment, we have managed to maintain stable growth rates, improve our operating performance and environmental indicators, and increase profitability, while production and exports are rising.
The implementation of “Vision 2025” has no end date. It is a process that takes into account international developments and is constantly being updated, with the aim of keeping our Group at the forefront of developments and continuing to play a leading role as an exemplary company for the wider region.
Aiming for climate neutrality by 2050 and noticing the significant opportunities that arise, we are charting our own course towards sustainable development and defining the country’s energy landscape.
With an investment plan of more than 4 billion euros, HELLENiQ ENERGY is modernising its traditional activities and making them compatible with the new environment to produce cleaner, low-emission liquid fuels. At the same time, it is developing a diversified portfolio focused on New Energy and investing in direct and indirect CO2 emission reduction actions.
It is noteworthy that the Group’s portfolio includes investments in innovative technologies, ranging from photovoltaic and wind parks, to energy storage and blue and green hydrogen.
In the Renewable Energy Sources sector, HELLENiQ ENERGY is firmly established as the fastest growing company in Greece in new projects. Within 18 months, the installed capacity in RES has been increased 12 times reaching 341 MW, having the largest PV capacity in operation in the country. Our project in Kozani, with a total capacity of 204 MW, is one of the largest RES projects in Europe to date, and produces 350 GWh of energy per year, meeting the annual energy needs of around 75,000 households. Our portfolio of projects under development has already exceeded 3.2 GW, and we are targeting over 1 GW of installed capacity by 2025 and over 2 GW by 2030, through a combination of organic growth and acquisitions in Greece and abroad. The plan also includes investment in other renewable energy technologies, such as offshore wind parks, on which we have entered into a strategic partnership with RWE Renewables, a global leader in offshore wind energy. Investing in innovative technologies and renewables enables HELLENiQ ENERGY to make its mark on the energy map of Europe.
Furthermore, in order to maintain HELLENiQ ENERGY’s leading position in the petroleum products sector, significant modernisation projects are being implemented in our industrial facilities and processes are being launched for the production of “cleaner” low-emission liquid fuels. We are looking for innovative practices for the production of energy products with a limited or even zero footprint. We are investing in the production of advanced new generation biofuels, liquefied natural gas, the gradual substitution of part of the refineries’ supply with low carbon footprint feedstocks, research and development of green technologies and applications, upgrading of energy and fuel production infrastructure, and energy efficiency. At the same time, following the principles of circular economy, we are implementing extensive programmes concerning waste reduction, recycling and reuse.
An exemplary refinery for the energy transition, the “refinery of the future”, is being created at the Elefsina industrial facilities. The aim is to reduce its carbon footprint by 35%-40%, through a series of energy efficiency projects and a cogeneration project, which will make the refinery energy self-sufficient and ensure its operational stability. At the same time, we aim to produce blue hydrogen through carbon capture, and green hydrogen through electrolysis, using renewable electricity from a photovoltaic park to be developed within the refinery’s facilities. At the Thessaloniki refinery, we are creating a 40,000 tons per year renewable diesel production unit with the co-processing of sustainable feedstocks, which will be completed in 2024. In this respect, we are investing in renewable fuels by exploiting our co-processing potential in existing plants.
We are laying the foundations for the production of “green” fuels, responding to the need to reduce carbon emissions in all transport sectors and contributing to the EU’s aspirational climate neutrality targets. We are actively participating in the European refining organisation FuelsEurope’s initiative to promote the production of oil-free liquid fuels that could be used by conventional cars with internal combustion engines and have a limited, or zero, footprint.
The joint planning with AEGEAN for more environmentally sustainable air transport continues with flights on SAF fuel supplied by EKO, both from Thessaloniki’s Macedonia Airport and Athens International Airport.
In addition, HELLENiQ ENERGY has dynamically penetrated the electromobility market through our subsidiaries, aiming to create more than 10,000 charging stations nationwide by 2027.
And of course, we aim that by 2023 all self-operated EKO and bp stations will have a near-zero footprint in terms of energy consumption.
The Group is committed to conducting its business activities with integrity, responsibility and respect for all its stakeholders, while demonstrating zero tolerance for corruption. In 2022, we completed the upgrade of our corporate governance framework, following high standards and procedures aligned with best practices, in addition to those required by applicable legislation.
It is worth noting that, 2022 was the first time that an external consultant carried out the evaluation of the effectiveness of the Board of Directors in terms of its collective abilities as a Body, the effectiveness of its committees, as well as the individual skills and contribution of its members with a view to ensuring its proper functioning and maximizing its performance.
Through this approach, we aim both to strengthen the trust of our customers, suppliers, employees and shareholders, and to contribute to ensuring transparency and credibility in the wider market and society.
Moreover, digital tools and modern practices are introduced in each of the Group’s business areas, accelerating the holistic transition and defining a new operating model at the cutting edge of technological innovation. The automation of tasks to improve operational efficiency, the empowerment of human capital through fostering new skills and knowledge, and the adoption of modern operating methods with projects that exceed 42 million euros, have turned digital transformation into the driving force of the Group’s growth. Profits from the full operation of the digital transformation plan, from 2024 onwards, is expected to exceed 50 million euros per year.
Sound management of Health and Safety issues, with continuous improvement of individual performance, remains HELLENiQ ENERGY’s non-negotiable priority and ongoing commitment. We incorporate, in our daily operations, the most up-to-date and rigorous standards to ensure the Health and Safety of our employees and associates and the sound and timely management of critical incidents and risks across the entire range of our activities. Our goal is the absence of accidents and to create a working environment where potential risks are identified, assessed, prevented and eliminated. With a view to achieving excellent performance in these key areas, we continue to invest consistently and continuously in prevention, infrastructure improvement and process modernisation, incorporating international best practices.
It is worth noting that in 2022, we invested more than 17 million euros to upgrade the security infrastructure in all Group facilities in Greece and abroad, while we conducted more than 100 preparedness drills in cooperation with the Fire Academy, EMAK (Disaster Management Special Units) and Police and Port Authorities. For another year, we achieved zero Major Industrial Accidents with no impact on the environment and society. Moreover, with a view to fostering a common corporate culture that promotes health and safety, both for our employees and our partners, 85,375 man-hours of Health and Safety training were conducted making up for more than 60% of the total training hours. As a result, the number of lost workday accidents and the accident frequency and total injuries rates in the Group showed a further decrease of 7%, 16.5% and 12.5% respectively, compared to 2021, in contrast to the corresponding European indicators which showed a slight increase.
The aforementioned are effective proof of our strong commitment to the creation of a safe working environment, which guarantees the uninterrupted operation of the Group and its business continuity.
At HELLENiQ ENERGY, we put all our energy into creating lasting and ever-increasing value for the benefit of the economy and society. We listen to the needs and expectations of our stakeholders and actively contribute to the sustainability of the country.
In 2022, HELLENiQ ENERGY left a strong economic footprint in the country, creating 2.9 billion euros of added value and contributing 2.91 billion euros to the state’s tax revenues. At the same time, it enhanced domestic employment, directly and indirectly supporting more than 32,000 jobs and indirectly enhancing the living standards of 82,000 citizens. Following the principles of inclusion and equal treatment, HELLENiQ ENERGY creates an excellent working environment of equal opportunities and respect.
Operating as an exemplary company, we design and undertake initiatives that meet basic social needs and enhance the quality of life of citizens. We have developed a multi-level and holistic Corporate Responsibility strategy, with targeted programs at national and local level, and visible results in Greece and in the rest of the countries where we operate. With actions amounting to 11.8 million euros, we have positively impacted the lives of more than 930,000 people.
Realising the consequences of the global energy crisis, HELLENiQ ENERGY, through the “Wave of Warmth” program, contributed, to the extent of its responsibility, to the support of Paediatric Hospitals and Units in Athens and Thessaloniki, school units in neighbouring municipalities and large families with low incomes from all over Greece, by offering free heating oil to meet their needs during the winter.
True to our commitment to operating transparently, we have been disclosing our sustainable development performance, following internationally recognised standards, for 18 years. Our environmentally and socially responsible operation is confirmed both by our inclusion in the FTSE4Good Index Series and the ATHEX ESG Index, as well as by our continuously improving performance in ESG ratings by international agencies such as CDP, S&P and Sustainalytics. We have adopted the ten UN Global Compact principles, and we publish the upgraded CoP Progress Report, while promoting the 17 UN Sustainable Development Goals (SDGs) with clear and targeted actions, policies and Corporate Responsibility program.
HELLENiQ ENERGY is rapidly transforming itself to continue to lead the energy industry with a view to sustainable development. It creates high added value for the economy, continues to support society and ensures the country’s energy efficiency and security.
Adhering to our commitments and our vision, we continue to work together with our people and our stakeholders to forge a path towards a sustainable and better future for all.
Chief Executive Officer