As part of its long-term “Shape Tomorrow” strategy, petroleum company MOL Group has successfully produced and tested a diesel fuel containing hydrotreated vegetable oil (HVO), as well as a sustainable aviation fuel (SAF), at its Slovnaft refinery in Bratislava, Slovakia.

The biodiesel HVO is produced using the oil in cashew nut shells, which is combined with crude oil to produce the biocomponent.

This production process is referred to as “co-processing”, which reduces the emissions of traditional fuels by combining them with plant residues, as the bio and fossil components are processed, simultaneously, directly during production.

The product was analysed and verified by the Hungarian Isotoptech Zrt laboratory, confirming that the product contained the required ratio of HVO.

Simultaneously, during the development of the HVO product, MOL Group also produced a SAF product using the same co-processing method, where partially refined cooking oil was combined with traditional raw material.

“We are technologically ready to produce biodiesel of vegetable origin as well as SAF. This could open a new chapter in the sustainable efforts of MOL Group, [as] we offer our customers an increasing variety and quantity of fuels, [thereby] contributing to the smart energy transition as well,” said MOL Group senior VP Csaba Zsótér.

At present, very few refineries in the world produce SAF, making Slovnaft one of the first to manufacture a product that meets the requirements set for SAF.

SAF is to account for 2% of total aviation fuel consumption in the EU from this year, with the percentage gradually increasing in certain European countries each year. The share of SAF is expected to increase to 6% by 2030, 20% by 2035, and 70% by 2050, in line with EU targets.

“The fact that Slovnaft has passed this test is a confirmation of our position as an important player in the Central and Eastern European region. The competence in chemical production that we have acquired over the long history of the company must be preserved and developed in line with where the company is moving and what kind of future we want to create,” comments Slovnaft board vice chairperson and MOL Group downstream VP Gabriel Szabó.

Remaining Resilient

Despite market and procedural challenges during the fourth quarter (Q4) of 2024, MOL Group has maintained operational stability into 2025.

Notwithstanding the slight decline in performance in the downstream segment compared with goals achieved in 2023 – owing to lower refining margins, high feedstock costs and low demand – the 2024 downstream operations performed in line with the strategic goals set for the year. Further, full-year fuel product sales increased by 5%.

In upstream operations in Q4, MOL Group’s capital generation “remained robust”, and the segment contributed significantly to the group’s performance, which was supported by the price environment and good production volumes.

Fuel sales in the consumer services segment made “a small positive contribution” to the 2024 results, despite macroeconomic factors affecting the demand for premium fuel products. The customer services segment was driven by non-fuel expansion, owing to continued organic growth.

Going forward the company aims to be resilient amid ongoing challenges and uncertainties and will focus on improving efficiency through cost-reduction, value generation improvements and innovation “that makes business sense and more profit”.

“[Last year] was not an easy year for MOL Group. The Ukrainian-Russian war still imposed challenges which we had to tackle to guarantee the security of supply in our countries [. . .] on top of this, the uncertainties around the whole oil industry’s future have been in the air. All of these put their marks on our profitability,” says MOL Group CEO Zsolt Hernádi.

He adds that, while the “external environment” limited the company’s growth potential, MOL Group continued to “selectively” expand its portfolio, made progress with its strategic investments and took steps to strengthen supply chain security.

“For this year we expect that the uncertainties might change but will not disappear. The forced agenda of the transition of the oil industry creates a serious competition issue for Europe, which we must tackle. Also, security of supply is still a priority for all players of the industry and without diverse energy procurement, affordable energy and strong industry, Europe might find itself in an increasingly difficult situation.”