Slovnaft to modernise and expand polypropylene production in Bratislava refinery investing up to EUR 63 million
- Slovnaft to invest EUR 63 million in modernisation and expansion of polypropylene production
- comprehensive reconstruction will be carried out by the renowned German company Linde Engineering
- polypropylene production capacity will be increased to 300 KTPY in favour of the most demanded products
- modernisation of the existing production unit Polypropylene 3 (PP3) will reduce the volume of emissions
“One of the goals of our updated 2030+ strategy is to reduce the production of fossil fuels and strengthen the production of basic plastics. This investment confirms the path we have set out, increasing polypropylene production at the Bratislava refinery to 300 kilotons per year. Linde Engineering is our reliable partner. Less than 20 years ago the company built the PP3 polypropylene production unit in Slovnaft and now it will renovate and modernise it,” said Gabriel Szabó, Executive Vice President of Downstream at MOL Group.Bratislava, June 1, 2022 – Slovnaft invests EUR 63 million in the expansion and modernisation of polypropylene production. The investment, which is the third largest in the last 15 years, will increase production capacity, reduce emissions, improve safety and bring greater attractiveness to customers. Linde Engineering, a renowned German company, is the contractor for the comprehensive reconstruction of the existing PP3 production unit. The contract for the modernisation and expansion of the PP3 unit was signed today in Bratislava by representatives of both companies.
“The revamp will enable Slovnaft to meet rising demands from the polyolefin processing industry. The project is challenging given its complexity: Interdependency with other process facilities allows only a narrow time frame for a shutdown. With our proven expertise and best-in-class services, we will be able to complete all installation works, including construction, commissioning and testing,” said Juergen Nowicki, CEO Linde Engineering.
The annual production capacity of polypropylene, sold on the market under the brand names of Tipplen and Tatren, will increase by 33 kilotons (kt) to 300 kt. The capacity increase will focus on strengthening the share of the most in-demand grades of polypropylene, which Slovnaft now produces in around 20 specifications. Storage and logistics infrastructure will also be increased. A further 16 storage silos will be added to the current 45. The adaptation of the technology will reduce emissions and the modern logistics infrastructure will improve safety at work.
The project will commence in the summer of 2022 with the preparation of project documentation and the processing of permits. The actual construction and reconstruction are planned to start in summer 2023 and are scheduled for completion in October 2024. The pre-preparatory phase started in 2015 with market analyses and feasibility studies. “The investment decision was made in September 2021 following by negotiations on the contract with Linde Engineering while the project preparation was also affected by the pandemic and the war in Ukraine,” said Michal Hušek, project manager for SLOVNAFT, a.s., about the preparations for the reconstruction of PP3.
Polypropylene is produced in Slovnaft in the form of milk glass coloured granulate. It is used in the food, textile and furniture industries, in the production of laboratory equipment, non-woven textiles, food and cosmetics containers, toiletries, and even toys.
In the photo after signing the contract from the left: Marek Senkovič, CEO of Slovnaft, Gabriel Szabó, VP for Downstream at MOL Group, Dennis Schulz, Managing Director of Linde Engineering, and Lars Oboth, Commertial Director of Linde Engineering.
About SLOVNAFT Group
SLOVNAFT Group is an integrated refining and petrochemical group. The key company of the Group is SLOVNAFT, a.s., which is mainly engaged in the processing of crude oil in one of the most complex European refineries and in the wholesale and retail sale of fuels. Slovnaft operates the largest network of petrol stations in the Slovak Republic. The company is one of Slovakia's leaders in CSR and corporate philanthropy, and significantly supports sports, culture, education, youth and environmental revitalisation. Forbes magazine ranked Slovnaft among the most valuable Slovak brands. SLOVNAFT Group is a member of the international MOL Group.
About Linde
Linde is a leading global industrial gases and engineering company with 2021 sales of US$31 billion (€26 billion). The company serves a variety of end markets including chemicals & energy, food & beverage, electronics, healthcare, manufacturing, metals and mining. Linde's industrial gases are used in countless applications, from life-saving oxygen for hospitals to high-purity & specialty gases for electronics manufacturing, hydrogen for clean fuels and much more. Linde also delivers state-of-the-art gas processing solutions to support customer expansion, efficiency improvements and emissions reductions.
Planned turnarounds begin in Slovnaft refinery, will reduce environmental burden and energy intensity of production
- turnarounds of 21 production units, a record number, will take place in two time blocks and will last until 20 July 2022
- extensive technical condition inspection, maintenance of technological equipment and modernization were prepared by Slovnaft project teams for past two years, approximately 1,600 external workers will be involved in the realisation phase
- Slovnaft invests EUR 36 million in summer maintenance
- Sused Slovnaft (Slovnaft Neighbour) app will always provide up-to-date information to the residents living in the vicinity of the refinery
Bratislava, May 19, 2022 - Slovnaft starts the summer part of the planned maintenance of its production facilities on Friday, May 20. During two months of intensive maintenance work, Slovnaft will shut down, clean, modernize and restart 21 production units in both the refining and petrochemical sections. The main objective is to reduce the environmental burden, reduce the impact of the energy intensity of production and increase the safety of complex technical equipment. The start-up of the last group of production units is scheduled for the second half of July. Continuity of supply to the network of filling stations and wholesale partners is ensured during the turnarounds.
"The maintenance and modernisation includes the refinery's distillation and hydrocracking production units, as well as key petrochemical production units, including the LDPE4 plastics production unit, which is one of the most advanced in Europe. During the summer turnaround, we will also implement investment projects, such as replacement of the distillation furnace with a new, more efficient and reliable one, replacement of pumps at the circulation centres with lower electricity consumption or replacement of the distillation column with a new extension enabling a more efficient distillation process," says Lukáš Noskovič, Manager of Project Management and Planned Turnarounds in SLOVNAFT, a.s. The total cost of the summer part of the planned maintenance exceeds EUR 36 million. At the same time, investment actions will be carried out at five production units to improve their environmental parameters and increase the safety of their operation. In total, investment projects worth EUR 25 million will be completed in May-July.
The shutdown and start-up of production units require activities whose accompanying phenomena may cause disturbance to residents living in the vicinity of the refinery. All material must be burned on field burners before production facilities are opened to prevent spillage into the surrounding area and endangering the health and life of people, the environment and property. The opening of the facilities themselves may be accompanied by the spread of odours, the intensity of which also depends on weather conditions. "Slovnaft is introducing new turnaround management principles through the Turnaround Excellence programme, which aim to reduce the time of planned turnarounds, and therefore to reduce the negative impact of activities on the refinery's surroundings," adds L. Noskovič. The company informs about the impact of the works on the comfort of residents on its website and in the mobile application Neighbour Slovnaft. In a separate section on the website, Slovnaft will regularly inform about the progress of the works of the summer part of the planned turnarounds.
The main supplier is the single service company Slovnaft Montáže a Opravy. Approximately 1,600 external workers will be involved in the turnarounds - mainly from engineering companies, but also electrical specialists and experts in measurement and regulation. Traditionally, Slovnaft will place great emphasis on occupational safety and health, including extensive fire safety measures. Internal safety coordinators will support the safe work of external workers directly at the production units. Slovnaft has also now prepared a well-established incentive programme for contractor workers, aimed at an accident-free course, which allows them to earn fuel cards.
This year's cycle of planned turnarounds is divided into three parts - spring, summer and autumn, with the summer part being the most extensive in terms of the volume of planned work. In total, Slovnaft is investing EUR 52 million in the maintenance of nearly 40 of its production units and facilities this year.
Watch a video about the summer part of the planned turnarounds:
About the SLOVNAFT, a.s. production zone
The refining and petrochemical part of the company in the south-eastern part of Bratislava covers an area of approximately 400 hectares. The production zone is divided into blocks with seven operational units, railway, logistics terminal, energy infrastructure and warehouses. Of the total area of the site, 270 hectares are grassed over and there are more than 10 000 trees growing there. Outside the main campus is a mechanical-chemical-biological wastewater treatment plant, which is one of the largest ecological structures in the region. SLOVNAFT, a.s. is one of the three most modern refinery-petrochemical complexes in Europe. The EFPA (Environmental Fuel Project Apollo) complex is key for the refinery and the petrochemical part includes the state-of-the-art LDPE4 n polyolefin complex for polyethylene production and the PP3 production unit where polypropylene is produced.
About SLOVNAFT Group
The SLOVNAFT Group is an integrated refining and petrochemical group. The key company of the Group is SLOVNAFT, a.s., which is mainly engaged in the processing of crude oil in one of the most complex European refineries and in the wholesale and retail sale of fuels. Slovnaft operates the largest network of petrol stations in the Slovak Republic. The company is one of Slovakia's leaders in CSR and corporate philanthropy, and significantly supports sports, culture, education, youth and environmental revitalisation. Forbes magazine ranked Slovnaft among the most valuable Slovak brands. SLOVNAFT Group is a member of the international MOL Group.
NEW PLANT UNDER CONSTRUCTION IN TISZAÚJVÁROS: A 65 BILLION CHEMICAL INVESTMENT BY MOL GROUP
- New propylene plant with HUF 65 billion investment will create competitive jobs in the long term
- With an annual production of 100,000 tonnes of propylene, the plant will cover a quarter of the MOL Group's total chemical needs
- The investment is part of MOL Group's updated strategy and represents a major step forward in its transformation into a chemical company
TISZAÚJVÁROS, 23 March 2022 - Official foundation stone laying ceremony of the new propylene plant of MOL Petrochemicals took place in Tiszaújváros. The plant is built as a greenfield investment for 65 billion HUF and will produce 100.000 tons of propylene, covering a significant rate of MOL’s chemical material need, increasing the self-sufficiency of the company.
This plant will provide propylene for the polyol complex already under construction, turning Tiszaújváros into the chemical capital of the region. Building of the propylene plant provides thousands of job opportunities and creates competitive workplace in the long run.
The construction of the new propylene plant integrates well into MOL Group's updated SHAPE TOMORROW 2030+ strategy, since with the help of this development the company can constantly increase the ratio of non-fuel products in its portfolio. MOL Group provides approximately USD 4.5 billion for investments that will turn Tiszaújváros into the main chemical capital of the region. The new plant has an important role in the course of developments, since it will provide stable supply of materials in three product lines of MOL Petrochemicals. The 100.000 tons of propylene provides a quater of the company's total need.
Photo: Zsolt Hernádi, Chairman-CEO of MOL Group
„In the last 5-10 years MOL has turned Tiszaújváros into a unique chemical center so by now the city is undoubtedly considered among the most modern petrochemical metropolises. We have a butadiene plant already built here, as well as a synthetic rubber plant that was built in cooperation with Japanese experts, and the town also hosts the largest industrial investment of the last 30 years, the polyol complex built for EUR 1.3 billion"– said Zsolt Hernádi, Chairman-CEO of MOL Group. He highlighted that with the construction of the propylene plant, MOL has reached an important milestone on the road of chemical transformation and energy transition. „This plant strengthens our self-supply capacity which is of great value for the whole country. From time-to-time history proves: we have to do everything to avoid depending on others" – he added.
Building the plant provides job opportunities for several thousands of people, the ratio of Hungarian contractors reaches approximately 50%. According to plans, the plant will start its operation in 2024 and it creates around 30-40 new competitive workplaces in the long run.
The investment represents the next milestone of a several year-long process: MOL Group is running several developments in Tiszaújváros. The butadiene extraction unit and the synthetic rubber plant are already operating, and building the polyol complex is in its final stage as well, which is one of the greatest domestic industrial investments. Additionally, the process of modernization and extending the life of the Olefin-1 plant is also progressing well, which is currently the biggest efficiency improvement program on existing equipment in Hungary.
The Hungarian Government is supporting the investment with HUF 5 billion. At the ceremony, Péter Szijjártó Minister of Foreign Affairs, Zsolt Hernádi Chairman-CEO of MOL Group and Zsófia Koncz, Member of the Hungarian Parliament laid down the foundation stone of the plant.
MOL GROUP ACQUIRED REMAT, HUNGARY’S MARKET LEADING PLASTICS RECYCLING COMPANY
- MOL Group acquired ReMat Zrt., a Hungarian market leading plastics recycling company using communal and industrial waste for creating regranules
- Aligned with its strategic goal to become a leader in the low-carbon circular economy in CEE, MOL continues building a strong portfolio in the field of plastic recycling and waste integration
- MOL’s total capacity of recycled plastic material raised to 40,000 tons/year, together with the latest acquisition of Aurora Kunststoffe Gmbh in Germany
BRATISLAVA, 1 April 2022 - MOL Group acquired ReMat Zrt., a recycler with production plants located in Tiszaújváros and Rakamaz, Hungary, and a logistics hub in Bratislava, Slovakia. ReMat is a market leading plastics recycler in Hungary with an annual processing capacity of 25,000 tons and almost 200 employees. The transaction fits into MOL’s portfolio and its goal to become a key player in the low carbon circular economy in Central and Eastern Europe.
ReMat is Hungary’s market leader in plastics recycling, using plastic waste from communal and industrial sources. The company prepares a wide range of polyethylene and polypropylene regranules and tailor-made products. ReMat has automatic selecting system, cleaning and regranulating equipment from leading manufacturers that can process up to 25,000 tons annually. With this acquisition, MOL will be able to develop tailor-made virgin and recyclate solutions to fulfill the ever-increasing demand of its customers for circular materials.
MOL Group launched its “Shape Tomorrow” 2030+ Strategy in last February, fully integrated with a new sustainability strategy, and started to act already to deliver on it. One of the main pillars of the Strategy is integrating circular economy in MOL’s operation, the company will spend USD 1bn in the next 5 years on new circular economy and green projects. Waste integration and utilisation is a key element of the new sustainable approach.
”We need plastic for our everyday life, plastic is good, what we don’t like is untreated plastic waste that is polluting the planet. MOL has started to invest in the circular economy, because we all want to live in a better environment; and for that we need more recycled goods. In addition, there is an increasing need from our customers for recycled material so good cause meets here with good business opportunities. With that in mind, in the last couple of years we started to build a strong portfolio around recycling. And we won’s stop here: for a net zero economy, we also have to use all kinds of waste as a resource, in a much more clever way than how we do today. Our goal is to become a key player in the low-carbon circular economy in Central and Eastern Europe and this acquisition is a major step towards this fascinating goal” - said Gabriel Szabó, Executive Vice President of MOL Group Downstream.
“We have come a long way since our foundation and are incredibly proud to be a pioneer within Hungary’s plastic recycling industry. Over the last two decades we have invested into state-of-the-art facilities and constantly expanded our processing capacities capable of supporting Hungary’s obligations towards the European Union regarding plastic recycling. We are excited to be joining MOL and look forward to continuing to drive growth for this attractive business” -said László Olasz, CEO of ReMat.
MOL has implemented investments already and it is continuously seeking for the opportunities to grow the share of recycled materials in its product portfolio. In November 2019, the first step was taken with the acquisition of Aurora Kunststoffe GmbH, a recycled plastic-based compounder in Germany. With a total combined annual capacity of 40,000 tons of Aurora and ReMat, MOL can offer a wide range of sustainable compounds and regranulates for the automotive and packaging industries. MOL also entered into a strategic partnership with German company APK, a pioneer in the development of plastic recycling technology, whose solvent based process is capable of producing high-quality polymers from complex plastic waste. Recently, MOL entered into strategic partnership with Swiss Meraxis to forge ahead with the development and production of polyolefin re-compounds in the future. MOL is planning investments in the field of chemical recycling as well and taking serious steps towards further waste-management activities.
About ReMat
ReMat Zrt. is based in Tiszaújváros and its origins date back to 1995, when the company started collecting and selling plastic waste. In 1997, the company started its recycling business and today has a processing capacity of 25,000 tonnes. ReMat Zrt. is the market leader in its field and the company operates in Hungary and Slovakia.
UNIQUE BIODIESEL COMPONENT PLANT BUILT BY ROSSI BIOFUEL AND MOL GROUP IN KOMÁROM
- Capacity 50 000 tonnes of biodiesel per year
- State-of-the-art technology, unique in Europe
- 85% greenhouse gas savings compared to conventional fuel
- The investment is in line with MOL Group's 2030+ "SHAPE TOMORROW" strategy
KOMÁROM, 11 March 2022 - The new plant of Rossi Biofuel in Komárom was inaugurated, which will significantly increase the biofuel production volume in Hungary. With this investment, MOL Group and Envien Group launched a technology in Europe that can boost greenhouse gas savings by more than 85 percent.
The advanced biodiesel plant of Rossi Biofuel Zrt. Was inaugurated, which will significantly increase the company's annual production and the biofuel production volume in Hungary with a capacity of 50,000 tons per year. The plant is the first in Europe to use the RepCat technology of the Austrian BDI-BioEnergy International GmbH, which is highly flexible in terms of raw materials: it also allows the processing of greasy wastes of different types and origins, such as used cooking oils, trap grease, animal fats or residues from vegetable oil production. Biodiesel produced in this way is one of the most climate-friendly fuels.
„We have brought a unique technology to Europe that allows us to produce biofuel from almost any type of fats. This is a huge success for all of us, as circular economy is one of the cornerstones of MOL Group's updated strategy. We have made a commitment to recycle waste in an efficient way, and to meet the world's growing energy needs with increasingly sustainable solutions. Energy transition is a long and complex process, but this investment clearly shows that conventional fuels can be turned into more environmentally friendly with the right technology and by using waste" – said Oszkár Világi, Deputy Chief Executive Officer of MOL Group.
Photo: Plant opening ceremony
With the construction of the plant, the MOL Group and Envien Group, the 25-75% owners of the company, are aiming to respond to both consumer and regulatory demands: the aim is for Rossi Biofuel to comply with EU rules on renewable transportation fuels. Rossi Biofuel's product is used as a bio-component in the production of diesel at Danube Refinery and Slovnaft refinery.
„This new modern plant is the Envien Group's first major investment in the production of advanced biofuels, where waste is processed into useful products. In our opinion, a plant that uses waste and mainly domestic raw materials, contributes to the greenhouse gas savings of transport and at the same time boosts and stimulates the local economy and employment, a way forward and a priority for the group. Due to the Hungarian subsidies, we decided to locate the plant in our production base in Komárom, Hungary, and we are confident that this is not our last project of this kind" – said Ing. Robert Spišák, PhD., Chairman of the Board of Rossi Biofuel.
The foundation works of the €45 million brownfield plant started in June 2020. More than 15 companies were involved in the construction work, with an average of 80 workers, but at certain times it could reach 150-170 workers. The state supported the investment with interest subsidies and a corporate tax credit, which doubled the number of Rossi Biofuel employees to over 100. The new plant was inaugurated by Dr. László Palkovics, Minister of the Ministry for Innovation and Technology, Dr. Judit Bertalan Czunyiné, Member of Parliament, Ing. Robert Spišák, PhD., Chairman of the Board of Rossi Biofuel Zrt. and Dr. Oszkár Világi, Deputy CEO of the MOL Group.
Photo: New plant in Komárom
Photo: Dr. Oszkár Világi, Deputy CEO of MOL Group
Photo: Ing. Robert Spišák, PhD., Chairman of the Board of Rossi Biofuel Zrt.
About Rossi Biofuel
Rossi Biofuel Zrt. is part of the Envien Group, which plays a key role in the production of biodiesel in the region. Rossi Biofuel Zrt.'s biodiesel plant is located within MOL Nyrt.'s industrial base in Komárom. The plant was established as a greenfield investment in 2006 and started production in December 2007. The main activity of Rossi Biofuel Zrt. is the production of biodiesel from vegetable oils and used cooking oil, mainly harvested within the region.
Envien Group is one of the largest and most important groups of companies in the CEE region active in the production of biofuels used in blends with conventional diesel and gasoline. The Group consists of ten member companies in five European countries - Slovakia, Czech Republic, Hungary, Switzerland and Croatia.