Commissioning and output replacing fossil gas
MOL Group has commissioned a biomethane production facility at Szarvas after an investment exceeding €7 million. The project expands the company’s renewable gas business and is aimed at reducing dependence on conventional natural gas. The upgraded installation is designed to produce enough biomethane to replace more than 7 million cubic metres of fossil natural gas each year.
The biomethane produced at Szarvas meets pipeline quality standards. It can be injected into Hungary’s natural gas distribution system. This differs from conventional biogas that is used directly for local electricity or heat generation.
The facility’s projected annual output is equivalent to the gas consumption of approximately 8,500 average households. MOL developed the project using an existing biogas facility acquired in 2023. Prior to conversion, Szarvas produced about 11 million to 12 million cubic metres of biogas annually, primarily for local combined heat and power production.
Feedstock, upgrading equipment, and grid injection
The biomethane plant uses agricultural and industrial organic residues as feedstock. These include more than 40,000 tonnes of meat-processing waste each year. It also processes approximately 53,000 tonnes of slurry and poultry manure, along with other residues.
In addition, around 18,000 tonnes of agricultural material are used annually. Italian technology supplier Gruppo AB provided the biomethane upgrading equipment. The new installation enables part of the renewable resource to enter Hungary’s national gas market.
The project supports an industrial model in which organic waste is converted into a commercially usable gas product rather than remaining solely a waste-management obligation. For industrial consumers, renewable gas may provide a route to reducing emissions associated with gas consumption. Its commercial and environmental treatment depends on certification, applicable regulations, and how the fuel is supplied and accounted for.
Role in MOL’s renewable gas expansion plans
For energy suppliers, biomethane can use existing gas infrastructure instead of requiring an entirely new distribution network. MOL intends to use Szarvas as a reference development for further renewable gas investment.
The company is evaluating both acquisitions of existing biomethane businesses and construction of additional production facilities. Future expansion will depend on the availability of reliable organic feedstock, capital costs, gas market pricing, and the commercial value attached to renewable gas.
Szarvas provides an operational platform for testing whether Hungary’s agricultural and industrial waste streams can support a larger domestic biomethane industry.
