Hungarian energy company MOL Group is expanding its Szarvas Biogas Plant with a new biomethane unit, marking a step in the company’s renewable energy strategy.

Once completed by the end of the year, the facility will become MOL’s first biomethane plant and only the third such installation in Hungary.

The development will enable the plant to refine biogas into high-purity biomethane suitable for injection into Hungary’s national natural gas grid.

The upgraded facility is expected to produce more than 7 million cubic metres of biomethane annually — enough to replace the yearly gas consumption of approximately 8,500 average households.

The project forms part of MOL Group’s long-term SHAPE TOMORROW 2030+ strategy, aimed at expanding its green energy portfolio and supporting the transition away from fossil fuels.

Biomethane, produced from organic materials such as agricultural residues, manure and food waste, is considered a promising renewable energy source in Central and Eastern Europe due to the region’s strong agricultural base and established gas infrastructure.

At the Szarvas facility, biogas is generated through the decomposition of organic waste before being purified into biomethane by removing carbon dioxide and other compounds.

The resulting fuel can directly substitute natural gas and also carries added market value through internationally recognised green certification systems.

“Through the new investment, we are providing an effective response to the energy trilemma: we are increasing energy security while producing an energy carrier in an affordable and sustainable way,” said Ádám Horváth, New and Sustainable Businesses Vice President of MOL Group. „In order to unlock the potential of biomethane at a national level, an effective support system, clear and supportive regulation, and cooperation between the agricultural and energy sectors will be necessary as well.”

MOL acquired the Szarvas biogas plant in 2023.

The site currently generates nearly 24 GWh of renewable electricity annually through cogeneration and processes more than 40,000 tonnes of waste from regional meat production, alongside 53,000 tonnes of livestock-related waste and 18,000 tonnes of agricultural feedstock each year.

The company said experience gained from operating the plant would support future acquisitions and greenfield renewable energy investments, while cooperation with agricultural suppliers will remain central to ensuring stable raw material supply. -OGN/ TradeArabia News Service