Engineering MOL Group Inaugurates First Biomethane Plant in Szarvas, Hungary

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MOL Group has invested more than 8.24 million dollars to develop its first biomethane plant in Szarvas, Hungary. The facility will now produce biomethane from biogas of a purity suitable for injection into the national natural gas network.

Szarvas/Hungary – MOL Group has inaugurated its first biomethane plant in Szarvas, Hungary. As a result of the investment of more than HUF 2.7 billion (8.24 million dollars), the facility can now produce biomethane from biogas of a purity suitable for injection into the national natural gas network. This way, more than 7 million cubic metres of natural gas will be replaced with renewable energy 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.

Locally produced energy is no longer simply an advantage, but a strategic factor. In Central and Eastern Europe, biomethane is considered a promising solution because it can build on a strong agricultural base, an existing gas network and real industrial demand.

Biogas is a renewable energy source generated through the decomposition of organic materials such as plant residues, manure, and food waste. It mainly consists of methane, along with carbon dioxide and other compounds. The new unit purifies biogas by removing these CO2 and other components, producing high-purity, high-energy-content biomethane.

Biomethane is not only suitable for replacing natural gas as a fossil energy carrier, but it also represents a product with much higher added value due to the associated green certificate (ISCC). The 7 million cubic metres of gas 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 bio CNG or bio LNG, 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.

"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.

MOL Group acquired the Szarvas Biogas Plant in 2023. In recent years, the 11-12 million cubic metres of biogas produced have been utilized 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 utilization options have been further expanded through the production of biomethane that can be fed into the natural 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 neighboring 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.

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