MOL’s new €22 million ($23.1 million) facility will be located at its Danube Refinery in Százhalombatta, Hungary and make use of a 10-megawatt electrolysis unit from Plug Power.
The Plug equipment uses electricity from renewable sources to split water into oxygen and hydrogen gas through electrolysis. This process does not produce any by-products that harm the environment.
The plant will produce approximately 1,600 tons of clean, carbon neutral green hydrogen annually. This will remove up to 25,000 tons of CO2 by replacing the natural gas-based production process being used currently.
Construction of the facility supports MOL’s recently announced Sustainability Plan. As part of the initiative, the carrier aims to achieve group-wide net-zero GHG emissions by 2050.
Once operational in 2023, MOL aims to use green hydrogen in its Danube Refinery during fuel production of its own hydrogen system.
“We are convinced that hydrogen is not only one of the most important energy carriers of the already ongoing energy transition, but it will be an essential factor in the new, carbon-neutral energy system as well,” said Gabriel Szabó, Executive Vice President of Downstream at MOL Group.
“This new technology allows the introduction of green hydrogen production in Hungary, Százhalombatta, which makes MOL Group one of the most important players in the sustainable energy economy in the region.”
Andy Marsh, CEO of Plug Power, added: “Green hydrogen addresses two critical issues facing humanity: climate change and energy independence.
“And our opportunities seem limitless to support the trend to pull green hydrogen into more traditional industrial hydrogen markets throughout the world. We are pleased to provide our state-of-the-art electrolyser technology to MOL Group’s Danube Refinery and enable MOL Group to take a big step forward in addressing these issues for the region.”
In other recent news, MOL and the Methanex Corporation have concluded definite agreements to establish a strategic partnership to further the use of methanol as a marine fuel.
Announced in October 2021, the agreements see the carrier acquire a 40 per cent minority interest in Methanex’s Waterfront Shipping (WFS) subsidiary, which specialises in shipping methanol.