• Climate change
• Air emissions
• Water management
• Waste management, spills and site remediation
• Biodiversity
• HSE Penalties

Climate change

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.

Renewable energy

The achievements of the key renewable energy projects are summarised below:

• Second generation biofuel research: Based on broader feedstock, MOL is preparing for the timely fulfillment of the EU Renewable Energy Directive through the production of bio-components in a more economic and efficient manner. The first phase of the project resulted in patented results and the consortium submitted a new tender to the National Office for Research and Technology (NKTH) for phase II.
• Biogas: produced from the organic waste of our bio-diesel factory can substitute approximately 10% of the Duna Refinery’s heating needs, currently provided by natural gas. Following the completion of the feasibility study, sample measurements and an estimation of the main technical parameters, the financial viability of the project is currently under  investigation.
• Algae oils are third-generation bio-fuel feedstock for biodiesel production: MOL DS Development has started an algae research project in Százhalombatta. Based on our laboratory experiments, we have installed a pilot reactor to continue our research towards capturing CO₂ from refinery flue gases and profitable algae oil production.
• Geothermal energy: In line with European renewable targets, a new technological and business model was developed by the Supply and Trading Division to utilise geothermal potential in Hungary and Croatia. Based on available assets (available 2D and 3D seismic data), some of the suitable reservoirs have been explored. Through CEGE (company owned 50% by MOL),  EUR 1.4 million was spent on this research with promising results. From both the technical and financial point of view, the project is ready to be launched with the aim of starting the production by 2014.
• More efficient biofuels: since European regulations support biodiesel production from non-edible and waste feedstock, important steps have been taken to realise a project dealing with the municipal collection of used cooking oil as feedstock for our joint venture biodiesel company, Rossi (HU). Collection will occur at MOL’s own filling stations.

Energy efficiency and GHG emissions

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%).

Direct and indirect energy consumption by source (GJ)

* excluding IES and INA

Energy efficiency

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) Algyő Gas Preparation Plan (HU) was also initiated in mid-2010, and will be finalised in Q1 of 2011.