Climate change

General aim: “Manage risks and opportunities related to climate change”
 

HIGHLIGHTS

  • In 2011, ca. 51 kt waste-based bio-component was used for diesel production, thanks to - inter alia - a campaign to collect used cooking oil from households
  • MOL opened a concept Filling Station to test sustainability technologies

'LOWLIGHTS'

  • Construction of biogas plant will only commence in 2012

mol.hu/climatechange

Future Product Portfolio

Related objective: “Increase the share of low-carbon products and services”

We are committed to increasing the share of low-carbon products and services we offer. As a result of our efforts in this area, several Research and Development projects are underway in order to broaden our portfolio.

Waste-based bio-component blending
 
In 2011, as the next part of our corporate social responsibility contribution, we launched a successful waste cooking oil collection campaign. In our joint venture bio-diesel producing facilities (which have undergone technological development over the last two years) MOL is now able to blend bio-diesel which is based on the collected used cooking oil throughout the whole year, which contributes to improving the efficiency of Downstream.
 
Second generation bio-diesel research
 
To prepare for EU renewable energy regulations in a timely and sustainable manner, we need to start the production of second generation bio-diesel. Research has started in order to establish the pre-requisite conditions for cost efficient new generation bio-diesel production. The emerging new technologies promise a better product quality, increased raw material base and fewer by-products. As the result of the successfully finalized first phase of the project, we were able to register a product patent.
 
Algae research
 
Algae will presumably have a significant share in third generation bio-fuel production. We can exploit synergies at the Danube Refinery, since algae can be used to capture a vast amount of carbon dioxide from vented emissions. In addition, different kinds of waste water could be utilized. Another business driver for algae research is the goal of producing enough renewable feedstock for bio-diesel and bio-gas production. Based on laboratory research we set up a small-scale experiment in Százhalombatta as a first step towards catching up with the world’s leading algae processing companies (which produce four times as much as we do currently).
 
Chemically stabilized rubber bitumen production
 
MOL, together with The University of Pannonia, developed a new, patented production method which is capable of producing Chemically Stabilized Rubber bitumen (CSRB). Through using suitable technological methods the unfavourably high viscosity of classic rubber bitumen can be reduced. Tests have proved that the performance of CSRB is comparable to high quality polymer modified bitumen, or even better. Not only can we reduce waste amount by processing waste rubber tires, but due to its longer lifespan and less need for maintenance, less CO2 is emitted during asphalt production and road construction.
 
Click here to read a relevant article from the MOL Scientific Magazine.

Bio-gas plant establishment
 
The biogas production concept has started being developed based on the renewable waste and the by-products of our bio-diesel units, which exploits refining synergies. Our goal is to produce a significant amount of bio-gas (capable of covering 10% of the heating gas needs of the Danube Refinery) in a renewable way.
 
Waste plastic-based fuel production
 
The aim of our plastic cracking project is to develop new technologies for creating so-called ‘synthetic crude oil’ out of plastic waste. Creation of industrial scale processing techniques may offer both sustainability and business benefits.
 
Click here to read a relevant article from the MOL Scientific Magazine.
 
Geothermal energy
 
Unfortunately, in 2011 MOL was not able to move forward with geothermal energy exploration, production and utilization because a concession tender was still not published in Hungary.
 

Energy efficiency and GHG emissions

Related objective: “Improve energy efficiency”

Energy Efficiency

Probably the most visible project of the year – undertaken by our Retail division – was the reconstruction and realization of our sustainable development flagship filling station (FS) in Budapest, Istenhegyi road, in Hungary. The technologies utilised make a direct contribution to producing energy, save energy passively and have an indirect effect on the milieu of the filling station. The goal of the concept filling station – using a pioneering approach – is to find methods for solving future challenges and gain experience in operating systems that are in advance of present industrial standards. Based on the experience gained, MOL can decide which elements to implement across the filling station network.
 
The project scope includes the following energy efficiency-related elements:
  • The extended thermal insulation saves energy by using 3 pane portals with a special framework and extra thick thermal insulation on the walls and roof.
  • The green wall system protects the building on hot summer days, provides fresh oxygenated air to the city and reduces CO2 emissions (66m2 means a saving of 3t CO2/year). It creates a positive psychological effect on customers and also ensures a pleasant micro-climate at the filling station.
  • The green roof system reduces temperature peaks both in summer and winter – saving energy. It uses rainwater and it ensures a pleasant micro-climate at the filling station.
  • The heat pump system heats and cools the building and the water it uses. The air-based system has no effect on the subsurface or groundwater. It works according to extra soundproof noise specifications.
  • The re-use of rainwater saves drinking water. Water is directed to the green building components (walls and roof) therefore less additional watering is needed.
  • LED illumination is energy efficient lighting. Due to its protracted lifespan (when compared to regular light bulbs) the use of LEDs also reduces waste.
  • The Solar / photo voltaic system provides renewable energy for the filling station and additionally provides shade for the service area. The systems produce approximately 30,800 kWh/year.
  • On the LED info panel information will be continuously broadcast to customers beyond the shop entrance to improve their awareness of Sustainability-related issues.
Click here to read a relevant article from the MOL Scientific Magazine.
 
Retail made further achievements in reducing energy consumption in 2011. 100 filling stations in Hungary and 39 TIFON filling stations in Croatia have been equipped with motion sensors, minimizing the unnecessary consumption of electricity. Slovnaft ran a campaign across its entire network in order to identify and to repair possible water leakages and also to ensure that filling stations were heated to the appropriate temperature, to reduce wasted energy.
 
Click here to read a relevant article from the MOL Scientific Magazine.
 
At Refining, Petrochemicals and Upstream we continued implementing our energy efficiency programmes. For further detailed information please refer to the GHG emissions chapter.
 
Click here to read a relevant article from the MOL Scientific Magazine.
 
At MOL-LUB three main projects were implemented. A new lighting system was constructed for the Logistics warehouse: proper lighting conditions are now combined with a decrease in use of electricity. New precision instruments were installed in the plant to automatically produce Aluminium isopropyl. The Additive Production Plant and Lubrication Grease Production Plant can now operate at the same time and be supplied with electricity using the same furnace. A reduced duration of furnace operation leads to reductions in energy use. A new pipeline between the grease plant and oil blending plant has been installed and, due to this, transportation of raw materials can now be done via the pipeline, instead of using the railway – saving a large amount of fuel.
 
GHG emissions

Related objective: “Ensure all sites move up one decile from current positions in their sectoral CO2 benchmarks by 20151"

We pay focused attention to improving our CO2 intensity to be able to maintain competitiveness in a carbon constrained world. Energy efficiency programs throughout MOL Group deliver improvements in CO2 intensity per unit of production at different business units.
Upstream initiated a full process revision and optimization process at the Algyő Gas plant which is expected to deliver a 20% CO2 emissions decrease against 2010. In our Russian operations we focus on utilisation of process-associated gases (i.e. raw natural gas that comes from crude oil wells) to generate power for our own consumption. The 11 million m3 of utilized gas translates into a 22 kt reduction in CO2 emissions according to newly-reported Russian data. We have started to implement modern lighting schemes in major Upstream plants, and in smaller units efforts are underway to separate peripheral lighting from main operational lighting.
 
At Refining, we completed energy efficiency improvements in production in 2011 at our AV2 unit in the Danube Refinery, and as part of the Eiffel programme, energy efficiency improvements at the Tisza Refinery mean that the use of 1,200 tonnes/year steam and 570 MWh/year electricity are avoided. An energy audit at the Slovnaft Refinery was also a contributor to improving refinery CO2 intensity by 6% year-on-year. At the IES Mantova Refinery we increased the efficiency of operations through strict monitoring of fuel consumption, reduction of fuel oil consumption and virgin naphtha consumption and an increase of natural gas consumption, just to mention a few factors. These projects delivered decreases of 19 kt CO2 with an additional 7.5 kt of avoided other air emissions. The Energy Conservation Team at the INA Rijeka Refinery created a comprehensive action plan (an "Energy Road Map") which includes items such as network maintenance and a condensate recovery system.
 
For years, the majority of the projects included in the Petrochemical business plan have combined economic/technological improvements with a reduction of our environmental footprint. The one which delivered the most tangible reductions in CO2 emissions was modification of fuel gas transfers between steam crackers and furnace reconstruction (which delivered almost 20 kt/year of avoided emissions). In future years we plan to implement projects such as replacing the quench oil in the steam cracker boiler with natural gas, putting into practice an Operational Management and Monitoring System and more. All these initiatives are expected to deliver an additional 17 kt of emission reductions per year.
 
On aggregate, our energy efficiency efforts have reduced CO2 emissions by 3% compared to 2010 (equivalent to more than 200 kt).
 
Furthermore, 575,449 tonnes of CO2 emissions were saved at a group level in 2011 via blending bio components in fuels. Compared to the results of the last three years, a total decrease of 1,514,667 tonnes of CO2 emissions was made.
 
 
 
Renewable Energy

Related objective: “Increase the share of renewable energy we consume”

All the renewable energy related projects and research which started earlier were continued. The main achievement of the year was the construction of our concept filling station which utilises solar and geothermal energy (see details above). In Pakistan, we introduced solar power systems for well sites, valve assemblies, cathode protection systems and security posts on hilltops to generate the power required. In 2011 the contribution of solar energy was approximately 6.6% of the total energy consumption of the central processing facility.
 
Click here to read a relevant article from the MOL Scientific Magazine

 

1 The CO2 benchmark value was calculated by ranking each installation in a specific sector using its CO2 performance. The average of the best 10% was then taken as a Europe-wide benchmark. These results of the ranking were then split into 10 equal parts (deciles). The performance of each MOL sector was rated according to those deciles, based on its actual performance. Our goal is to improve performance by one decile for each installation.

 

 

 
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