Hungarian oil and gas giant MOL has inaugurated one of Europe's largest green hydrogen plants and the biggest in CEE to support refinery operations at its facility south of Budapest from a €22mn investment.

MOL will produce 1,600 tonnes of carbon-neutral green hydrogen annually from the second half of 2024 using the technology of US-based Plug Power, the company announced on April 11.

The electrolyser uses electricity from renewable sources to break down water into hydrogen and oxygen without harming the environment.

MOL will use the technology at its Danube Refinery, with an annual capacity of 8.1m tonnes, making it is one of the biggest refineries in the region.

By replacing natural gas, Hungary’s oil and gas, it will slash carbon dioxide emissions by 25,000 tons annually, or by one-sixth of its total emissions. The investment aligns with its Shape Tomorrow strategy, which aims to make the company’s operations more sustainable, competitive, and self-sufficient, MOL said.

MOL has set out to spend $4+bn organic capex on low-carbon and sustainable business projects until 2030.

The opening of the plant is another step towards the implementation of sustainable mobility, MOL Group CEO Jozsef Molnar said.

The company remains committed to carbon neutrality by 2050 and want to supply the region. He added that the green hydrogen technology would be brought to the group's other two refineries, in Rijeka and Bratislava.

Speaking at the inauguration, Energy Affairs Minister Csaba Lantos stressed the importance of availing of all available technologies in the effort to achieve energy sovereignty.