MOL Group is expanding its Szarvas Biogas Plant by adding a new biomethane production unit, marking another major step in the company’s renewable energy and sustainability strategy. Once completed, the upgraded facility will be capable of producing high-purity biomethane that can be directly injected into Hungary’s national natural gas network. The project is expected to be completed by the end of the year and will produce more than seven million cubic metres of biomethane annually. The output will help replace conventional natural gas while strengthening MOL Group’s green energy portfolio under its long-term SHAPE TOMORROW 2030+ strategy.
First Biomethane Plant for MOL Group
The Szarvas development will become MOL Group’s first biomethane plant and Hungary’s third such facility. The investment highlights the company’s growing focus on renewable energy, circular economy initiatives and low-carbon fuel solutions. The project supports regional efforts to improve energy security while reducing dependence on fossil fuels.
How Biomethane Production Works
Biogas is produced through the decomposition of organic materials such as agricultural residues, manure and food waste. It mainly consists of methane along with carbon dioxide and other compounds. The biomethane unit will purify the raw biogas by removing unwanted components to create high-energy, high-purity biomethane. As a result, the upgraded fuel can be used as a sustainable alternative to natural gas. In addition, biomethane carries green certification benefits through the ISCC system, increasing its commercial and environmental value. The planned annual production of seven million cubic metres of biomethane is equivalent to the yearly natural gas consumption of nearly 8,500 average households.
Strategic Importance for Central and Eastern Europe
MOL believes biomethane has significant growth potential across Central and Eastern Europe due to the region’s strong agricultural base, established gas infrastructure and rising industrial demand for cleaner energy solutions. Locally produced biomethane also improves energy independence and supports long-term energy resilience for the region. MOL plans to use operational experience from the Szarvas facility when evaluating future acquisitions and developing additional greenfield renewable energy projects.
MOL Highlights Energy Security and Sustainability Benefits
Commenting on the development, Ádám Horváth, Vice President of New and Sustainable Businesses at MOL Group, said the investment offers a practical solution to the global energy trilemma by balancing energy security, affordability and sustainability. He also emphasised that unlocking the full potential of biomethane will require supportive regulations, effective incentive systems and stronger cooperation between the agriculture and energy sectors.
Existing Szarvas Facility Supports Circular Economy
MOL Group acquired the Szarvas biogas plant in 2023. Currently, the facility uses biogas-powered gas engines to generate nearly 24 GWh of green electricity annually while also supplying combined heat energy. The plant processes more than 40,000 tonnes of waste annually from regional meat production operations, along with approximately 53,000 tonnes of residual agricultural waste such as slurry and manure from nearby livestock farms. Additionally, the facility utilises around 18,000 tons of agricultural feedstock each year and produces nearly 12 million cubic metres of biogas annually.
Strong Agricultural Partnerships Drive Feedstock Supply
MOL acknowledged that its agricultural partners and raw material suppliers play a critical role in ensuring a stable and efficient feedstock supply chain for the Szarvas facility. As per the press release, the company plans to further strengthen long-term collaboration with the agricultural sector as it continues expanding its renewable energy and biomethane operations in the future.
