Hungarian MOL Group signed a loan contract worth up to US$150 million (€120 million) for the purpose of modernizing its Slovakian member – Slovnaft.
8.5 year unsecured senior loan from the European Bank for Reconstruction and Development (EBRD) will support Slovnaft Group, a refining and petrochemical company, in financing a number of improvements in energy efficiency and environmental performance.
Project includes installation of a new Low Density Polyethylene (LDPE) petrochemical unit and upgrade of the plant’s steam cracker. Both will be among the most carbon efficient facilities in the European Union. The new equipment will reduce CO2 emissions by about 80,000 tones annually – the equivalent of the annual greenhouse gas emissions from 16,000 passenger vehicles.
The estimated costs for the whole project amount to €310 million and they are related to implementation of EU Industrial Emissions Directive (2010/75/EU).
It is expected to demonstrate successful energy and environmental improvements that go beyond baseline standards in the industry, with a petrochemical facility exceeding Best Available Technique (BAT), becoming one of the 10% least carbon intensive in the EU, exceeding requirements of the Directive ahead of the deadline and introducing an integrated energy and management system at the level of the refinery and petrochemical complex.
The loan, signed on July 3rd, 2012, is a part of Sustainable Energy Initiative (SEI) of the EBRD. Since its establishment in 2006 the Bank has invested a total od €8,8 billion in energy efficiency projects in 29 countries.