MOL Group Sets Aside USD 4 Billion for Green Investments by 2030 – EQ
In Short : MOL Group earmarks USD 4 billion for green investments by 2030, demonstrating a substantial commitment to sustainability and environmentally friendly initiatives, aligning with global efforts to combat climate change.
In Detail : MOL Group, headquartered in Budapest, Hungary, has recently unveiled its updated long-term strategy, titled SHAPE TOMORROW, aimed at fostering a greener, more self-sufficient, and competitive region. This strategic update underscores the company’s commitment to sustainability and innovation, with a particular focus on renewable fuels, green hydrogen, biomethane, and geothermal energy. As part of this initiative, MOL Group plans to invest over $4 billion in green investments by the year 2030, while also targeting carbon neutrality by 2050.
Since 2016, MOL Group has been actively diversifying its operations away from fossil fuels towards petrochemicals and consumer services. However, the evolving landscape of the energy industry, coupled with increasingly ambitious sustainability targets, necessitates a recalibration of the company’s strategy. With a pragmatic and forward-thinking approach, MOL Group seeks to navigate the green energy transition while ensuring the security of energy supply, maintaining competitiveness, and creating value for its shareholders.
The updated strategy prioritizes energy supply security and facilitates a smooth transition towards green energy solutions. To achieve this, MOL Group plans to invest heavily in green initiatives, including waste integration, recycling, and medium-scale chemical projects, with a targeted investment of $1 billion by 2030. This investment will enable the company to diversify its portfolio and reduce its reliance on fossil fuels, paving the way for a more sustainable future.
In the downstream segment, MOL Group is focused on fortifying its refining foothold in Europe while aligning with the changing dynamics of mobility and economic requirements. The production of renewable fuels, such as biomethane and green hydrogen, will play a crucial role in sustainable mobility. Additionally, the company will focus on circular economy principles to increase the utilization of bio- and waste streams in production processes.
Upstream operations will continue to play a pivotal role in financing the group’s transformation, with a focus on maintaining production levels and exploring carbon-neutral projects. These projects include geothermal exploration, lithium pilot projects, and carbon capture and storage initiatives, aimed at reducing greenhouse gas emissions and enhancing energy security in the region.
Consumer Services aims to achieve $1 billion in EBITDA per year by 2030, driven by network expansion, optimization, and the promotion of non-fuel products. The company plans to increase the share of non-fuel products in transactions and expand its MOL MOVE user base in the region. Furthermore, MOL Group will enhance its service stations, develop mobility solutions, and prepare for the adoption of hydrogen fuel cell vehicles.
A key aspect of MOL Group’s integrated business model is its approach to waste management. The company views waste as a valuable resource and energy source, with plans to increase recycling rates and reduce landfilling. By 2035, MOL Group aims to achieve a recycling rate of 65% and significantly decrease landfilling to just 10%. This initiative has the potential to provide 1.5 million tons of feedstock annually to the regional oil, chemical, and energy sectors.
As part of its decarbonization efforts, MOL Group anticipates consuming around 2,500 GWh per year of renewable electricity by 2030. To meet this demand, the company is investing in its renewable portfolio, including solar projects and green hydrogen plants. These initiatives align with MOL Group’s commitment to sustainability and its vision for a greener, more resilient future.
