Hungarian oil and gas company MOL Group announced on 16 March that it has started biofuel production at its Danube refinery.

Bio feedstock, such as vegetable oils, used cooking oil (UCO) and animal fats will be co-processed with fossil components at the plant to make more sustainable fuel, the company said, adding that it planned to gradually increase the share of waste and residue raw materials in the process.

The move was part of the company’s wider strategy to become a key player in the Central and Eastern European circular economy. MOL said it was planning to spend US$1bn on new, low carbon and sustainable businesses in the next five years.

“MOL Group has been a biofuel producer by purchasing more than 500,000 tonnes of biofuels for blending. With this investment, we have started to produce sustainable diesel for the first time within the group,” said MOL Group downstream executive vice president Gabriel Szabó.

The company planned to produce more than 100,000 tonnes of biofuel by 2030 as part of its Shape Tomorrow MOL Group 2030+ strategy.

Headquartered in Budapest, MOL Group is active in more than 30 countries and it operates three refineries and two petrochemical plants under integrated supply chain management in Hungary, Slovakia and Croatia.

It also owns a network of almost 2,000 service stations in 10 countries in Central and South Eastern Europe.