MOL Group opens first biomethane plant in Hungary

MOL Group has inaugurated its first biomethane plant in Szarvas, Hungary, after investing more than HUF 2.7 billion. The project is designed to replace more than 7 million cubic metres of natural gas a year with renewable fuel and expand MOL’s low-carbon energy portfolio.

Why it matters: - The Szarvas facility turns organic waste into biomethane that can be injected into Hungary’s national gas network. - The plant is designed to replace more than 7 million cubic metres of natural gas each year with renewable energy. - The project adds to MOL Group’s green energy portfolio and supports energy security in Central and Eastern Europe. - The plant also creates a new source of renewable fuel for public transport and freight through bioCNG and bioLNG.

What happened: - MOL Group inaugurated its first biomethane plant in Szarvas, Hungary. - The company invested more than HUF 2.7 billion in the facility. - The plant is MOL Group’s first biomethane plant and the third facility of its kind in Hungary. - Italy’s Gruppo AB supplied the technology for the project. - MOL Group acquired the Szarvas Biogas Plant in 2023.

The details: - The new unit purifies biogas into high-purity biomethane that is suitable for injection into the natural gas grid. - Biogas is produced from the decomposition of organic materials such as plant residues, manure and food waste. - The plant removes carbon dioxide and other components from biogas to raise the gas quality. - The 7 million cubic metres of gas are equivalent to the annual gas demand of about 8,500 average households. - Biomethane carries a green certificate under ISCC, which raises its value beyond a direct natural gas substitute. - The facility processes more than 40,000 tonnes of waste each year from the region’s meat industry. - It also takes in 53,000 tonnes of residual waste, including slurry and turkey manure, from nearby livestock and meat-processing farms. - About 18,000 tonnes of agricultural substrate are also used as feedstock. - Before the biomethane upgrade, the site used 11 million to 12 million cubic metres of biogas a year in cogeneration. - That earlier setup produced almost 24 GWh of renewable electricity and a significant amount of heat annually.

Between the lines: - The Szarvas project shows how agricultural waste can be turned into a higher-value energy product instead of being used only for power and heat. - MOL Group is positioning biomethane as a scalable business tied to its commercial, financing and project execution capabilities. - The company sees supportive European rules, a favorable Hungarian investment environment and industrial innovation as key to wider adoption. - The plant gives MOL Group operational experience that could inform future acquisitions and new greenfield investments.

What's next: - MOL Group plans to deepen cooperation with agricultural partners and feedstock suppliers to secure stable raw material supply. - The company will use experience from Szarvas to assess future acquisition opportunities and plan new greenfield projects. - MOL Group expects biomethane to grow into a larger tradable gas business over time. - The company’s announcement provides more information.