MOL to invest USD 1 billion within Polyol project

The MOL Group has signed licensing agreements with companies Evonik IP and Thyssenkrupp which will enable it to export propylene oxide, a key component in the production of polyether polyols.

MOL intends to become an important producer of polyether polyols, high-value products implemented in the automotive, packaging and furniture industries, says the press release. As the first investment step, MOL will invest up to a billion dollars in the Polyol project.

The agreements pertain to the purchase of technological permits and project packages for the so-called HPPO (hydrogen peroxide to propylene oxide) technology of propylene oxide production. The issuer of the license for the HP unit, meant for internal usage, is Evonik, whereas the consortium formed by Evonik and Thyssenkrupp Industrial Solutions AG is licensing the PO unit.

The agreements also contain binding bids and pre-contracts for later phases of planning and building HPPO units by Thyssenkrupp and the purchase of catalysts from Evonik. The signing of these licensing agreements marks the beginning of this big investment project, which is of great strategic importance for MOL, as well as the beginning of a long-term partnership between the MOL Group, Evonik and Thyssenkrupp.

These agreements are the first step in realizing the long-term MOL 2030 strategy, within which around USD 1.9 billion will be set aside for investments in transformation projects in the field of chemical and petrochemical products in the period from 2017 till 2021. The industrial complex, to be built in Hungary, will be the biggest individual organic investment project of the MOL Group in the 2017-2021 period.

The new industrial complex will consist of HPPO units with a production capacity of 200 kt of propylene oxide a year, several production lines for polyether polyols, utility and other infrastructural investments.

MOL Hungarian Oil and Gas Budapest (Mađarska)

Evonik Industries AG Essen

ThyssenKrupp AG Nemačka

MOL Group

Evonik IP

Thyssenkrupp

propylene oxide

production of polyether polyols

polyether polyols

hydrogen peroxide