Future Energy

Renewable energies play an important role not only in the fight against climate change but in security of energy supply in the region. MOL focuses on those areas which are closest to its core activities: geothermal energy and biofuels.

Geothermal energy
A joint venture company, Central European Geothermal Energy (CEGE, 50% owned by MOL), founded in July 2008, is focusing on the development of geothermal power plant projects in Hungary and in the region. In the very recent years CEGE team has explored all potential areas nationwide and analyzed the available geological data, thus creating a strong basis for the start of the implementation process of a pilot geothermal power plant project. CEGE decided to carry out deep-geothermal activities for electricity generation purposes, therefore it is exposed to geological risk issues, similarly as it is usual in the hydrocarbon industry. Generally, the profitability of the renewable energy sector is significantly influenced by the regulatory environment. Due to the very recent elaboration of a new geothermal act - which will require the companies to acquire a concession permit prior starting geothermal activities (even the exploration phase) in a specific area - first concessions may obtain from 2011 on. If the exploration phases of CEGE’s geothermal projects were accomplished successfully, the first geothermal energy supply facilities could be established the early 2010’s. They will produce electricity or heat using only domestic, renewable energy sources within a more environmentally-friendly energy structure.

Biofuels
As MOL is the leading oil company in the region, development and application of bio-fuels is an important aspect of its strategy. We have reached progress in the development of new generation of biodiesel, and we are working on further increasing life cycle greenhouse gas savings.

In line with European directions
Since 2007, MOL Group has been selling E5 gasoline (sulphur-free and contains 4.4 % bio-ethanol) and B5 diesel oil (sulphur-free and contains 4.4 % bio-diesel) in each market where local legislations made that possible.
In order to secure MOL Group’s FAME demand, one of the biggest bio-diesel component production plants in the region was established in Leopoldov (Slovakia), and another at MOL’s Hungarian premises in Komárom. The annual capacities of the new plants (150,000 tons p.a. in Komárom and 100.000 tons p.a. in Leopoldov) are significant even on a European scale. In case of both joint venture companies MOL owns 25%+1 stock share. Rossi Biofuel Plc. (Komárom) started its production in December, 2007 and Meroco a.s. (Leopoldov) in March, 2008. As a unique technical solution, the bio-diesel product is mainly transported by pipeline from Komárom to MOL Danube Refinery (Százhalombatta), which is more economic and environmentally friendly then any other transportation possibilities. In the bio-diesel plant of Rossi Biofuel Plc. the technology allows to process used cooking oil in a certain ratio, therefore, the available and properly treated used cooking oil was converted to bio-diesel in our plant in Komárom.

Sustainability criteria
The European Standardization Body (CEN) organized a Technical Committee in 2008, which has been elaborating European standards for sustainable produced biomass for energy applications (bio-fuels, heating, cooling, and electricity). These standards, which are being developed by the CEN Technical Committee, will allow users to check for the sustainability themes as laid down by the European authorities (Renewable Energy Directive). MOL Downstream is taking part of the Technical Committee’s work, two experts are delegated, one from Hungary and one from Slovakia who at the same time are representing their countries as well.
To make our first generation biofuels more sustainable, we started different actions. These steps are the increased waste cooking oil processing, and the integration of renewable energies to the production. Using wastes as a feedstock are preferred by the new Renewable Energy Directive, and has great GHG saving potential in contrast of straight vegetable oils in case of biodiesel production. Our estimations show that integrating renewable energies to the production process can significantly increase the life cycle GHG emission of the produced biofuel. For this purpose, we started a pilot experiment, to determine the biogas production potential from the organic sludge of Rossi Biofuel. According to the results, the producible biogas can cover all the natural gas demand of the bio-diesel plant, and even surpluses. The project is now in the basic engineering phase.
The procurement of different biocomponent feedstocks are always in harmony with the current EU regulations.

New generation biofuels
MOL’s aim is to produce both second generation biofuels and quality biocomponent in a more economic and energy efficient way, from a wider range of feedstock. In order to develop the production of second generation biodiesel, MOL established a consortium and started the Jedlik Ányos project. The members of the consortium are the most important characters of Hungarian agriculture and scientific life (private companies, universities and scientific institutions).
The main advantage of the technology under development compared to the already known first generation process is that no by product is produced in large amount, and wider range of commodity (vegetable oil, from any origin, used cooking oil, animal fat) can be used to produce excellent quality biodiesel with high cetan number, good oxidation stability and cold flow properties. The first objective was succeeded in 2009, as the new generation bio-diesel pilot facility worked out. Our next goal is to scale-up the technology.