Following several years of research and development Hungary-headed oil and gas major MOL Group has stepped up the value chain and has become a biofuel producer, through the realization of an investment of a bio feedstock co-processing unit at its Danube Refinery.
MOL Group started co-processing as an R&D project in 2012 based on the research results of Pannon University. Types and quality requirements of processable raw materials were determined and the investment was launched in 2018.
This investment included the necessary infrastructure development for storing and processing the new bio-materials. The trial operation of the new process started in March 2020 and has been operating regularly since May 2020.
MOL Group has been a biofuel user by purchasing more than 500 000 tonnes of biofuels – bioethanol and biodiesel – for blending. With this investment, we have started to produce sustainable diesel for the first time within MOL Group and we became biofuel producers. The benefits are numerous, as we produce more sustainable fuel, we will also help the circular economy by recycling waste. In line with our recently updated strategy, “SHAPE TOMORROW” we are planning to produce 100 000+ tonnes of biofuel by 2030, said Gabriel Szabó, EVP of MOL Group Downstream.
Enable higher bio-component in diesel fuel
One of the main goals of the European Union, and MOL Group, is to achieve net-zero carbon dioxide (CO2) emissions by 2050. The renewable share obligations of transportation fuel are continuously increasing, accordingly, the biocomponent content expectations have also increased across MOL Group’s fuel markets, which have so far been met mainly by blending bioethanol and biodiesel.
During co-processing at the Danube Refinery, bio-feedstock is processed together with the fossil material in the production of diesel fuel. Vegetable oils along with used cooking oils (UCO) and animal fats can also be used for this purpose.
As a result, the produced gasoil fuel is partly renewable, without any quality changes compared to diesel produced entirely from crude-oil. The main advantage of this method is that the resultant diesel product can be still blended with a maximum of 7 percent of bio-feedstock-based fuel, in line with diesel fuel standards, enabling a higher overall share of bio-components in the fuel.
Furthermore, according to MOL Group, the bio-component produced using this process has significantly higher CO2 saving potential than other types of biofuels produced from the same feedstock.
This co-processing project means a reduction of up to 200 000 tonnes of carbon dioxide (CO2) emissions annually. The target is to further expand the type of waste that can be used as feedstocks in the processing to achieve even better CO2 savings from the product.
Invest US$1 billion in new carbon reduction technologies
One of the cornerstones of the MOL Group 2030+ Strategy is to play a key role in shaping the low-carbon circular economy with investments in new businesses such as waste integration and utilization, recycling, carbon capture, utilization, and storage (CCUS), advanced biofuels, and potentially hydrogen-related opportunities.
In the next five years, MOL will spend US$1 billion on new, low-carbon, and sustainable projects to become a key player in Central Europe in the circular economy and to get closer to its net-zero CO2 emitter goal by 2050.
MOL aims to transform its Downstream segment into a highly efficient, sustainable, chemicals-focused leading industry player.
