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22 min ago 3 min read
Hungary-based oil and gas firm MOL Group has inaugurated its first biomethane plant in Hungary, completing the upgrade of its Szarvas biogas facility to produce renewable gas for injection into the national grid.
The HUF 2.7bn ($8.3m) project will allow more than seven million cubic metres of biomethane to be produced each year, replacing an equivalent volume of natural gas.
MOL announced plans to upgrade the Szarvas site , with the development set to make it the third operational biomethane facility in Hungary.
The company acquired the biogas plant in 2023. Until now, its 11 to 12 million cubic metres of annual biogas production had been used through cogeneration, generating almost 24 GWh of renewable electricity alongside heat.
The upgrade gives the site another route for using that biogas by removing carbon dioxide and other components to produce biomethane suitable for injection into the natural gas network.
The plant processes more than 40,000 tonnes of waste from the regional meat industry each year, alongside 53,000 tonnes of residual waste including slurry and turkey manure from neighbouring livestock and meat-processing farms.
A further 18,000 tonnes of agricultural substrate is used as feedstock.
MOL said the seven million cubic metres of biomethane produced annually is equivalent to the gas demand of around 8,500 average households.
The company also pointed to potential applications beyond the gas grid, with biomethane able to be used as a transport fuel in the form of bioCNG or bioLNG.
The technology for the project was supplied by Italian company Gruppo AB.
Dr György Bacsa, Group Chief Strategic Officer at MOL Group, said the project could provide a basis for developing biomethane into a larger business for the company.
“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,” he said.
Bacsa said supportive regulation, an investment-friendly national environment and industrial innovation would be needed to develop the sector.
MOL said the experience gained from operating Szarvas will help it assess further acquisitions and greenfield projects as it looks to expand its biomethane activities.
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