In Hungary, integrated oil, gas, petrochemicals, and consumer retail company MOL Group has inaugurated its first biomethane plant in Szarvas. As a result of the investment of more than HUF 2.7 billion (c. €7.4 million), the facility can now produce biomethane (aka renewable natural gas – RNG) for injection into the national natural gas network.
MOL Group has inaugurated its first biomethane plant in Szarvas. As a result of the investment of more than HUF 2.7 billion (c. €7.4 million), the facility can now produce biomethane (aka renewable natural gas – RNG) for injection into the national natural gas network.
This way, more than 7 million Nm3 of natural gas will be replaced with renewable gas annually.
The investment marks an important milestone in MOL Group’s long-term SHAPE TOMORROW strategy by further expanding the company’s green energy portfolio, strengthening energy security, and contributing to the sustainable energy supply of the region.
Strategic factor
Locally produced energy is no longer simply an advantage, but is a strategic factor. In Central and Eastern Europe, biomethane is seen as a promising solution because it can build on a strong agricultural base, an existing gas network, and real industrial demand.
The new unit upgrades biogas, formed by the decomposition of organic materials such as plant residues, manure, and food waste, removing carbon dioxide (CO2) and other impurities to produce high-purity biomethane.
Biomethane is not only suitable for replacing natural gas as a fossil energy carrier, but it is also a product with much higher added value thanks to the associated green certificate (ISCC).
The 7 million Nm3 of biomethane is equivalent to the annual gas demand of approximately 8,500 average households.
In addition, biomethane can be used directly in public transportation and freight transport in the form of bioCNG or bioLNG, allowing renewable energy produced from organic waste to become a fuel for more sustainable mobility.
This is MOL Group’s first biomethane plant and the third facility of its kind in Hungary. The technology for the project was supplied by Italy’s Gruppo AB.
The inauguration of the Szarvas biomethane plant is a strategic milestone for MOL Group. With our first facility of this kind, we are simultaneously strengthening energy security, expanding our sustainable product portfolio and taking another tangible step towards implementing our SHAPE TOMORROW strategy. The investment also demonstrates that, by leveraging the region’s agricultural potential and existing gas infrastructure, we can provide a competitive, locally produced renewable energy source. We are convinced that the green transition and competitiveness are not conflicting objectives, but mutually reinforcing ambitions. Achieving this requires, at the same time, supportive European regulation, a national environment that encourages investment, and industrial innovation. Over the longer term, MOL can transform biomethane into a large-scale, tradable gas business through its commercial, financing and project implementation capabilities, said Dr György Bacsa, Group Chief Strategic Officer of MOL Group.
Combined heat, power, and biomethane
MOL Group acquired the Szarvas Biogas Plant in 2023. In recent years, the 11-12 million cubic metres of biogas produced have been utilised through cogeneration, producing almost 24 GWh of renewable electricity and a significant amount of heat energy each year.
With the current development, the plant’s utilisation options have been further expanded through the production of biomethane that can be fed into the gas network.
The facility processes more than 40,000 tonnes of waste annually from the region’s meat industry, and an additional 53,000 tonnes of residual waste, such as slurry and turkey manure, sourced from neighbouring livestock and meat-processing farms.
In addition, approximately 18,000 tonnes of agricultural substrate is used as feedstock for the production of biogas and, now, of biomethane purified from it.
MOL’s agricultural partners and feedstock suppliers play a key role in ensuring a stable and efficient supply of raw materials. The company therefore intends to further strengthen its strong and reliable cooperation with the agricultural sector in the future.
The experience gained from operating the Szarvas facility will also support MOL in evaluating future acquisition opportunities and planning new greenfield investments.
