A more competitive, self-sufficient and greener region: MOL Group is to achieve carbon neutrality with a smart transition
MOL Group aims to achieve carbon neutrality by 2050 through smart transition: ensuring sustainability and further strengthening security of supply through innovative technologies.
- MOL Group updates its long-term strategy announced in 2016.
- MOL Group aims to achieve carbon neutrality by 2050 through smart transition: ensuring sustainability and further strengthening security of supply through innovative technologies.
- The company will further strengthen its refineries with $150 million in efficiency improvements and continue to invest in oil processing resilience.
- Exploration & production focuses on green projects alongside security of supply.
- Consumer Services will achieve $1 billion in EBITDA per year by 2030, continue to transform its filling stations and further expand its network of e-charging stations.
- Waste management business could potentially provide 1.5 million tons of feedstock per annum to the regional oil, chemical and energy sector from 2030.
- Will invest $4 billion in green investments by 2030 and make the region more competitive with renewable energy.
BUDAPEST, Hungary, March 14, 2024 (GLOBE NEWSWIRE) -- MOL Group has updated its long-term strategy SHAPE TOMORROW: the company aims to make the region greener, more self-sufficient and more competitive. MOL Group is ensuring a smart transition with tomorrow's solutions: investing in further strengthening the region's security of supply, creating value from waste and shaping the future of mobility with innovative technologies. The updated strategy places greater emphasis on renewable fuels, green hydrogen, biomethane and geothermal energy. It will spend more than $4 billion on green investments by 2030 and aims to reach carbon neutrality by 2050.
"In 2016, we were one of the first in the oil and gas industry to announce that we would diversify from fossil fuel and gradually develop ourselves in petrochemicals and consumer services. We have been following the same direction for eight years, but we have to take into account that recent years have brought radical challenges and change in the energy industry. The time has come to update our strategy again, as sustainability targets have become more ambitious while demand for fossil fuels remains strong.
"We do not believe in a dogmatic approach, we are looking for smart solutions. We are moving forward in a sober, pragmatic way enabling the green energy transition while uncompromisingly guaranteeing security of energy supply, the competitiveness of our company and value creation for our shareholders," said Zsolt Hernádi, CEO MOL Group.
He added: "This means that, alongside our traditional business activities, we will be using green energy to make our company, and thus the whole Central European region, more sustainable, self-sufficient and competitive. We create value from waste, kick-start the circular economy and further strengthen security of supply.
There is no question that the energy transition must be implemented and the very ambitious targets set by the European Union must be achieved. This is in the interest of all of us. MOL Group, as a leading company in the Central European industry, is doing everything it can to meet these targets and transform the company. But it is clear that it is not possible to do it alone and it is not fair if all the costs of the energy transition are passed on to industrial companies. Community goals can only be achieved with community support, smart regulation and cooperation on all level. MOL Group can be counted on as a partner in this common European effort."
The main priority of the updated long-term strategy is to ensure energy supply security and also enable a steady green transition. To achieve this, the company further strengthens its traditional asset portfolio and will spend more than $4 billion on green investments by 2030. The key elements of the strategy update by business area are as follows:
Downstream: continues to strengthen its refining positions in Europe, while dynamically adapting to the changing needs of mobility and the economy. Renewable fuels open new dimensions in sustainable mobility: the updated strategy focuses on the production of biomethane and green hydrogen, while the circular economy increases the contribution of bio- and waste streams to production. To diversify from fossil fuels, MOL Group will invest $1 billion in waste integration, recycling and medium-scale chemical investments by 2030.
The company will make refining more flexible to meet the demands of the economic and regulatory environment and further strengthen security of supply in the region. MOL Group also spends more than $1 billion by 2030 on projects that enable energy efficiency, the scale-up of sustainable fuels in its portfolio and substantially reduce the business's GHG emissions. To achieve these goals, we will increase the use of renewable electricity across the MOL Group, particularly in the Downstream area.
Upstream: plays a key role in financing the group-level transformation, and slowing down the natural decline in production remains a priority. MOL Group will maintain production at an average daily level of at least 90 thousand barrels of oil equivalent for the next 5 years. Beyond conventional hydrocarbon production, the division strengthens its carbon-neutral projects: the company is building on its existing competencies to start geothermal exploration, launches a pilot lithium project and focuses on building storage capacity in Carbon Capture and Storage. Upstream also further strengthens cross-border cooperation between MOL and INA, optimizes its infrastructure and supports security of supply in the region through efficiency improvements and cost optimization. It will further diversify its international portfolio and establish strategic partnerships.
Consumer Services: aims to reach $1 billion EBITDA per year by 2030. This will require further network expansion and optimization in existing and potential new markets in the CEE region. The company plans to increase the share of non-fuel products to 65% of all transactions by 2025 and to 85% by 2030, furthermore its goal is to have 10 million MOL MOVE users in the region. MOL will continue to transform its service stations in the CEE region, further expanding and strengthening its gastro offers. In line with market needs, it will further develop its mobility solutions, its electric charging network and prepare for the uptake of hydrogen fuel cell vehicles.
MOL Group's integrated business model provides a unique solution in Europe to one of the most significant environmental challenges: waste management. The company considers waste as a valuable raw material and energy source, and will increase its recycling rates to 65% by 2035, while reducing landfilling to 10%. Waste management business could potentially provide 1.5 million tons of feedstock per annum to the regional oil, chemical and energy sector from 2030.
As MOL Group is expected to consume around 2,500 GWh per annum of renewable electricity by 2030 due to Downstream decarbonization, we are building our own renewable portfolio. Our green hydrogen plant in Százhalombatta will be also supplied with renewable electricity. Solar projects are expected to provide the majority of the production, and we are considering additional renewable sources and storage solutions.
About MOL Group
MOL Group is an international, integrated oil, gas, petrochemicals and consumer retail company, headquartered in Budapest, Hungary. It is active in over 30 countries with a dynamic international workforce of 25,000 people and a track record of more than 100 years. MOL Group operates three refineries and two petrochemical plants under integrated supply chain-management in Hungary, Slovakia and Croatia, and owns a network of almost 2400 service stations across 10 countries in Central & South-Eastern Europe. MOL’s exploration and production activities are supported by more than 85 years’ experience in the field of hydrocarbons and 30 years in the injection of CO2. At the moment, there are production activities in 7 countries and exploration assets in 11 countries.
MOL is committed to transform its traditional fossil-fuel-based operations into a low-carbon, sustainable business model and aspires to become net carbon neutral by 2050 while shaping the low-carbon circular economy in Central-and Eastern Europe.
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