Commissioning of biomethane upgrading at Szarvas
MOL Group has commissioned a biomethane production facility at Szarvas after an investment exceeding €7 million. The project is part of an expansion of the company’s renewable gas business and efforts to reduce reliance 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 facility’s output meets pipeline quality standards, enabling injection into Hungary’s natural gas distribution system. This differs from conventional biogas that is used directly for local electricity or heat generation. MOL said the plant’s projected annual production is equivalent to the gas consumption of approximately 8,500 average households.
Conversion of an acquired biogas site
MOL developed the project at an existing biogas facility it acquired in 2023. Prior to conversion, Szarvas produced approximately 11 million to 12 million cubic metres of biogas annually. That biogas was primarily used for local combined heat and power production.
The new biomethane installation allows part of the renewable gas resource to enter the national gas market. The upgrading process supports the shift from on-site energy use toward grid injection through the natural gas distribution system.
Feedstock inputs and upgrading equipment
The facility uses agricultural and industrial organic residues as feedstock. MOL reported that annual inputs include more than 40,000 tonnes of meat-processing waste, approximately 53,000 tonnes of slurry, poultry manure and other residues, and around 18,000 tonnes of agricultural material. These materials supply the production chain for biomethane generation.
Italian technology supplier Gruppo AB provided the biomethane upgrading equipment. The project is positioned as a model in which organic waste becomes a commercially usable gas product rather than remaining solely a waste-management obligation.
Role in renewable gas markets and MOL’s next steps
For industrial consumers, renewable gas may provide a route to reducing emissions associated with gas consumption. The commercial and environmental treatment depends on certification, applicable regulations, and how the fuel is supplied and accounted for. For energy suppliers, biomethane can enable use of existing gas infrastructure instead of building 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 reliable organic feedstock availability, 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.
