In 2010, we spent our efforts on continuing the implementation of the action plans defined in the framework of MOL Group’s Climate Change Statement that was adopted in 2009.
At the legislative level, a CO2 benchmarking system was developed by the European Commission in dialogue with stakeholders. This benchmarking system will drive CO2 reductions at least until 2020. MOL Group, via its membership in industrial associations, took an active part in the effort to balance challenging benchmarks with ensuring the competitiveness of our businesses on a global scale.
As in previous years, MOL also participated in the Carbon Disclosure Project in 2010, where climate change related data are collected on behalf of major global investors. Parallelly, we enhanced our reporting of indirect GHG emissions.
The achievements of the key renewable energy projects are summarised below:
MOL’s continued focus on improving energy efficiency was reflected in the reduction of CO2 emissions from installations subject to the emission trading scheme (ETS). In practice, 96% of all CO2 releases within the MOL Group (without INA) are conditional on the EU Emissions Trading System (with INA: 67%). Verified emissions reached the level of 5.13 Mt CO2 in 2009. While in 2010, emissions before verification stand at 4.87 Mt; representing a 5% reduction.
In addition to a reduction in absolute figures, we have also met our internal target - ‘to reduce specific CO2 emissions by one percent year over year’ - in the Refining Division (-12.9%). However, due to three unplanned shutdowns in 2010, the specific emissions of Petrochemicals slightly increased (+ 4.2%).
* excluding IES and INA
Each division involved contributed its share to this positive performance. Energy efficiency improvement at the Refining Division, covered by the ‘EIFFEL Programme’ and managed by DS Development, delivered an estimated reduction of fuel consumption by 35 TJ/y (Terajoules/year). Some reductions were also due to a decrease in crude oil processing and general turnarounds (general offstream period).
Similar programmes have been running in the Exploration and Production Divisions as well. In Hungary, the ENRAC (Energy Rationalization) Project’s goal has been to increase energy and maintenance savings resulting in reduced upstream CO2 emissions. Lower emissions have mainly been achieved by modernising heating systems and changing compressor drives from gas to electric engines.
Flaring is a specific issue for E&P installations. Our goal is to flare or vent gas only for technological reasons and in case of emergencies. This goal has been fulfilled 100% in Hungary. In Pakistan, we achieved a thirty-five percent reduction in the volume of flared gas, while in Russia we are working on the utilisation of associated gas instead of flaring.
In the Petrochemical (Petchem) Division, we have established a Demand Management Team responsible for the monitoring and optimisation of energy utilisation from the source to the consumer, and for the investigation of losses. Improved steam management resulted in a 1.3 TJ reduction in steam losses at TVK (HU), and an additional 3 TJ cut in steam consumption at SPC. Almost 3 kt of CO2 were saved as a result of better process regulation and the revamp of furnaces at the SPC (SK) Steam Cracker, thus saving 15 million m3 of natural gas.
At the Natural Gas Transmission Division, MOL reduced energy consumption through the optimisation of gas turbine operation and boiler performance. Through the application of new techniques during pipeline servicing and maintenance, we reduced the volume of flared and vented gases.
In 2010, the energy efficiency audit of key production plants was continued by the MOL Energy Efficiency Team. The audit of TVK was completed, and we aim to begin implementation of the action plan in 2011. The audit of the Exploration and Production (E&P) Algy§ Gas Preparation Plan (HU) was also initiated in mid-2010, and will be finalised in Q1 of 2011.