Hungary Unveils €70 Billion Grant Package for Geothermal Energy Projects
The program aims to decrease reliance on natural gas and enhance renewable energy initiatives.
Hungary's Ministry of Energy has announced a substantial grant package of approximately 70 billion Hungarian Forints (about €170 million), set to be made available within weeks as part of the Jedlik Ányos energy program.
Attila Steiner, the Secretary of State for Energy, conveyed the announcement during the kickoff of a geothermal heating modernization project at the Bundzsák Dezső City Sports Center in Kiskunhalas, located in Bács-Kiskun County.
The initiative seeks to significantly reduce the country's dependence on natural gas, which currently constitutes over 70% of the district heating sector's energy source.
The government’s goal is to lower this reliance to between 40% and 50%, potentially saving hundreds of millions of cubic meters of natural gas annually.
Steiner emphasized the necessity of tapping into locally available energy resources, noting that much of Hungary's natural gas is imported.
He pointed out that geothermal energy serves as a sustainable and environmentally friendly renewable energy source.
The Kiskunhalas project is particularly noteworthy as it aims to utilize an existing hydrocarbon well for geothermal energy extraction.
This pilot project seeks to evaluate water yields and assess well performance relative to newly drilled options.
Jean-François Paroz, the Swiss ambassador to Hungary, highlighted the Swiss-Hungarian Cooperation Program’s commitment of nearly 5 billion Forints for energy efficiency improvements and renewable geothermal energy initiatives.
Approximately half of these resources will be allocated to less developed regions in Hungary, with 11 settlements receiving financial aid, including Kiskunhalas, which is expected to benefit from about 251 million Forints from both Hungarian and Swiss budgets.
Gábor Bányai, the government commissioner overseeing the Southern Great Plain's development, noted a significant geological formation extending south of Kiskunhalas to the Baja region, concealing numerous fossil energy resources.
He remarked on the historical discussions surrounding the potential for utilizing former exploration or production wells around Kiskunhalas, acknowledging the discovery of substantial thermal energy sources at depths exceeding 2500 meters.
Kiskunhalas Mayor Robert Fülöp indicated that various companies have sought to exploit geothermal energy in the area in the past two decades, yet no success had been achieved thus far.
He mentioned the presence of numerous abandoned oil wells surrounding Kiskunhalas and expressed optimism that the current project may pave the way for their utilization, which could have broader implications for the Southern Great Plain region.
During the launch event, MS Energy Solutions Kft.
announced securing 215 million Forints in funding from the Swiss Fund, complemented by approximately 40 million Forints from national co-financing, along with an investment of nearly 50 million Forints from the company itself.
Managing Director Mátyás Gáti explained that the renewable energy supply for the sports center will utilize WeHEAT technology, a closed system incorporating deep geothermal probes within non-productive or exhausted well structures, enabling effective heat extraction from geological layers with minimal losses.
The system developed by MS Energy Solutions is created to function in a closed loop, utilizing existing deep well structures in an environmentally sustainable manner, eliminating geological risks and minimizing water withdrawal.
By harnessing an obsolete hydrocarbon well, the project aims to eradicate fossil fuel reliance, potentially averting over 100 tons of CO2 emissions annually.
The infrastructure will connect the well to the sports center through a district heating pipeline, using a water-water heat pump and three heat exchanger stations to facilitate heating.
The project anticipates approximately 720 gigajoules of geothermal energy production on an annual basis.
In its latest financial report, MS Energy Solutions Kft., based in Eger, employs 12 staff members and recorded a net revenue of about 271 million Forints in 2023, reflecting an increase from 201 million Forints the previous year.
The company concluded the fiscal year with a profit close to 40 million Forints, compared to 22 million Forints in 2022.
Attila Steiner, the Secretary of State for Energy, conveyed the announcement during the kickoff of a geothermal heating modernization project at the Bundzsák Dezső City Sports Center in Kiskunhalas, located in Bács-Kiskun County.
The initiative seeks to significantly reduce the country's dependence on natural gas, which currently constitutes over 70% of the district heating sector's energy source.
The government’s goal is to lower this reliance to between 40% and 50%, potentially saving hundreds of millions of cubic meters of natural gas annually.
Steiner emphasized the necessity of tapping into locally available energy resources, noting that much of Hungary's natural gas is imported.
He pointed out that geothermal energy serves as a sustainable and environmentally friendly renewable energy source.
The Kiskunhalas project is particularly noteworthy as it aims to utilize an existing hydrocarbon well for geothermal energy extraction.
This pilot project seeks to evaluate water yields and assess well performance relative to newly drilled options.
Jean-François Paroz, the Swiss ambassador to Hungary, highlighted the Swiss-Hungarian Cooperation Program’s commitment of nearly 5 billion Forints for energy efficiency improvements and renewable geothermal energy initiatives.
Approximately half of these resources will be allocated to less developed regions in Hungary, with 11 settlements receiving financial aid, including Kiskunhalas, which is expected to benefit from about 251 million Forints from both Hungarian and Swiss budgets.
Gábor Bányai, the government commissioner overseeing the Southern Great Plain's development, noted a significant geological formation extending south of Kiskunhalas to the Baja region, concealing numerous fossil energy resources.
He remarked on the historical discussions surrounding the potential for utilizing former exploration or production wells around Kiskunhalas, acknowledging the discovery of substantial thermal energy sources at depths exceeding 2500 meters.
Kiskunhalas Mayor Robert Fülöp indicated that various companies have sought to exploit geothermal energy in the area in the past two decades, yet no success had been achieved thus far.
He mentioned the presence of numerous abandoned oil wells surrounding Kiskunhalas and expressed optimism that the current project may pave the way for their utilization, which could have broader implications for the Southern Great Plain region.
During the launch event, MS Energy Solutions Kft.
announced securing 215 million Forints in funding from the Swiss Fund, complemented by approximately 40 million Forints from national co-financing, along with an investment of nearly 50 million Forints from the company itself.
Managing Director Mátyás Gáti explained that the renewable energy supply for the sports center will utilize WeHEAT technology, a closed system incorporating deep geothermal probes within non-productive or exhausted well structures, enabling effective heat extraction from geological layers with minimal losses.
The system developed by MS Energy Solutions is created to function in a closed loop, utilizing existing deep well structures in an environmentally sustainable manner, eliminating geological risks and minimizing water withdrawal.
By harnessing an obsolete hydrocarbon well, the project aims to eradicate fossil fuel reliance, potentially averting over 100 tons of CO2 emissions annually.
The infrastructure will connect the well to the sports center through a district heating pipeline, using a water-water heat pump and three heat exchanger stations to facilitate heating.
The project anticipates approximately 720 gigajoules of geothermal energy production on an annual basis.
In its latest financial report, MS Energy Solutions Kft., based in Eger, employs 12 staff members and recorded a net revenue of about 271 million Forints in 2023, reflecting an increase from 201 million Forints the previous year.
The company concluded the fiscal year with a profit close to 40 million Forints, compared to 22 million Forints in 2022.
