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MOL wishes to enter waste management to propel its sustainable investments

Hungarian oil and gas company MOL submitted a binding offer within the framework of the waste management concession tender issued by Hungary.

MOL commented upon the announcement that its entry into waste management is fully in line with the company’s 2030+ Shape Tomorrow strategy seeking investments in the new, low-carbon, circular economy business.

The company underlined that waste management activities are expected to significantly contribute to its capital allocation target aiming to achieve at least 50 per cent EU Taxonomy Aligned CAPEX ratio by 2030.

The waste management concession is expected to cover a period of 35 years starting on 1 July 2023. The total waste stream falling under the concession system to be established amounts to around 4.5-5 million tons per year.

According to the concession agreement the awarded bidder will be responsible for providing municipal waste management services as a single licensor in Hungary covering the whole industry value chain for municipal solid waste.

MOL said its binding offer is in line with the concession tender requirements, which sets out to target the development of the waste treatment collection system and waste treatment infrastructure with an investment obligation exceeding 50 billion forints within the initial ten years of the concession agreement.

The tender also expects the bidder to undertake the establishment of new waste-to-energy generation capacities exceeding 100,000 tonnes per year within the initial five years of the concession contract.

Additionally, the tender requires the acquisition of legal entities such as NHKV – responsible for the coordination of the Hungarian waste management system – and NHSZ – the public service provider in the municipal waste management market.

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