MOL is expanding Hungary鈥檚 Szarvas plant with a biomethane unit, boosting renewable energy production and replacing fossil natural gas.
MOL Group is strengthening its renewable energy portfolio by expanding the Szarvas Biogas Plant with a new biomethane production unit. This development will enable the facility to refine biogas into high-purity biomethane that is suitable for direct injection into Hungary鈥檚 national natural gas network. The project is expected to be completed before the end of the year and will have the capacity to generate more than 7 million cubic metres of biomethane annually. By replacing conventional natural gas in the grid, the initiative represents another important milestone in the company鈥檚 long-term sustainability ambitions under its SHAPE TOMORROW 2030+ strategy. Once operational, the facility will become MOL Group鈥檚 first biomethane-producing plant and Hungary鈥檚 third biomethane facility overall.
Biogas is considered a renewable energy source because it is generated through the natural decomposition of organic materials such as agricultural residues, food waste, manure, and other biodegradable materials. Raw biogas mainly contains methane along with carbon dioxide and smaller amounts of other gases. Through the installation of the new purification unit, the Szarvas plant will be capable of removing these unwanted components and producing biomethane with significantly higher methane concentration and energy value. This upgraded fuel can serve as a sustainable substitute for fossil-based natural gas.
In addition to its environmental advantages, biomethane also delivers stronger economic value because it qualifies for internationally recognized green certification systems such as ISCC. The planned annual production of over 7 million cubic metres of biomethane would be enough to meet the yearly natural gas consumption of nearly 8,500 average households, highlighting the project鈥檚 contribution to energy diversification and sustainability.
The company emphasized that locally produced renewable energy has become increasingly important from both economic and strategic perspectives. Across Central and Eastern Europe, biomethane is emerging as a highly promising energy solution due to the region鈥檚 strong agricultural sector, established gas infrastructure, and rising industrial demand for cleaner fuels. The Szarvas development reflects how agricultural resources and energy production can be effectively integrated to support regional energy security and decarbonization efforts.
MOL also stated that operational experience gained from the Szarvas facility will play a key role in evaluating future acquisition opportunities as well as new greenfield renewable energy investments. The company aims to use the project as a model for future biomethane developments within its broader sustainable energy strategy.
脕d谩m Horv谩th, Vice President for New and Sustainable Businesses at MOL Group, noted that the project addresses the 鈥渆nergy trilemma鈥� by simultaneously improving energy security, ensuring affordability, and supporting environmental sustainability. He added that unlocking the full national potential of biomethane will require supportive government regulation, effective incentive mechanisms, and close cooperation between the agricultural and energy industries.
MOL Group acquired the Szarvas biogas plant in 2023. At present, the facility uses biogas in gas engines to produce approximately 24 GWh of renewable electricity annually while also supplying combined heat energy. The site functions as an advanced waste processing and cogeneration facility with an electrical peak capacity of around 4 megawatts.
The plant processes more than 40,000 tonnes of waste annually from regional meat production facilities, along with another 53,000 tonnes of residual agricultural waste such as slurry and manure from nearby livestock farms and meat processors. Additionally, around 18,000 tonnes of agricultural feedstock is utilized every year, enabling the production of nearly 12 million cubic metres of biogas.
MOL highlighted that its agricultural suppliers and partners remain essential to maintaining stable feedstock availability and efficient plant operations. As a result, the company intends to further strengthen cooperation with the agricultural sector in order to support future renewable energy expansion and ensure long-term raw material security.
