Hungary Launches €70 Billion Grant Package for Geothermal Projects
The initiative aims to reduce natural gas consumption and promote renewable energy sources.
In a significant move to promote renewable energy, Hungary's Ministry of Energy announced that a grant package of approximately 70 billion Hungarian Forints (around €170 million) will be made available within weeks under the Jedlik Ányos energy program.
The announcement was made by Attila Steiner, the Secretary of State for Energy, during the opening event of a geothermal heating modernization project at the Bundzsák Dezső City Sports Center in Kiskunhalas, Bács-Kiskun County.
Steiner stated that the primary objective of the grant opportunities is to replace a substantial amount of natural gas consumption in Hungary, where the district heating sector's dependence on gas exceeds 70%.
The government aims to reduce this reliance to between 40 to 50%, which could save the country several hundred million cubic meters of natural gas annually.
Highlighting the importance of utilizing locally available energy resources, Steiner pointed out that a significant portion of Hungary's natural gas is imported.
He emphasized that geothermal energy is a viable, environmentally friendly, and renewable energy source.
In an innovative approach, the Kiskunhalas project will use an existing hydrocarbon well to extract geothermal energy.
This pilot project aims to address several questions regarding expected water yields and the performance of wells compared to newly drilled ones.
Jean-François Paroz, Switzerland's ambassador to Hungary, noted that the Swiss-Hungarian Cooperation Program has allocated nearly 5 billion Forints for initiatives aimed at improving energy efficiency and utilizing renewable geothermal energy.
Approximately half of these funds will be directed towards Hungary's less developed regions, with a total of 11 settlements receiving support, including Kiskunhalas, which will benefit from approximately 251 million Forints from both Hungarian and Swiss budgets.
Gábor Bányai, the government commissioner responsible for the comprehensive development of the Southern Great Plain, stated that a significant geological formation extends south of Kiskunhalas to the Baja region, concealing numerous fossil energy resources.
He recalled that the potential for utilizing former exploration or production wells in and around Kiskunhalas has been discussed multiple times over the past decades, noting that substantial amounts of thermal energy have been found in depths below 2500 meters.
Robert Fülöp, the mayor of Kiskunhalas, remarked that various companies have attempted to harness geothermal energy in the area over the last 20 years, but none have succeeded so far.
He highlighted that numerous abandoned oil wells surround Kiskunhalas, and this new project may lead to their future utilization, impacting the entire Southern Great Plain region.
During the event, MS Energy Solutions Kft.
announced that it has secured 215 million Forints in support from the Swiss Fund, with approximately 40 million Forints coming from national co-financing, and the company contributing nearly 50 million Forints to the project.
The company's managing director, Mátyás Gáti, detailed that the renewable energy supply for the sports center will utilize the WeHEAT technology, a closed system operated deep geothermal probes, which are integrated into non-producing or exhausted well structures, allowing for efficient heat utilization from the geological layers with minimal losses.
The system developed by MS Energy Solutions is designed to operate in a closed loop, harnessing existing deep well structures in an environmentally friendly manner without geological risks and water withdrawal.
By utilizing an obsolete, non-productive hydrocarbon well, the project aims to eliminate the need for fossil fuels, potentially saving over 100 tons of CO2 emissions annually.
The investment will connect the well and the sports center via a district heating pipeline, employing a water-water heat pump and three heat exchanger stations for heating.
The project is expected to enable nearly 720 gigajoules of geothermal energy production annually.
MS Energy Solutions Kft., based in Eger, employs 12 staff members and reported a net revenue of approximately 271 million Forints in 2023, an increase from 201 million Forints the previous year, and concluded the year with a profit of nearly 40 million Forints, compared to 22 million Forints in 2022.
The announcement was made by Attila Steiner, the Secretary of State for Energy, during the opening event of a geothermal heating modernization project at the Bundzsák Dezső City Sports Center in Kiskunhalas, Bács-Kiskun County.
Steiner stated that the primary objective of the grant opportunities is to replace a substantial amount of natural gas consumption in Hungary, where the district heating sector's dependence on gas exceeds 70%.
The government aims to reduce this reliance to between 40 to 50%, which could save the country several hundred million cubic meters of natural gas annually.
Highlighting the importance of utilizing locally available energy resources, Steiner pointed out that a significant portion of Hungary's natural gas is imported.
He emphasized that geothermal energy is a viable, environmentally friendly, and renewable energy source.
In an innovative approach, the Kiskunhalas project will use an existing hydrocarbon well to extract geothermal energy.
This pilot project aims to address several questions regarding expected water yields and the performance of wells compared to newly drilled ones.
Jean-François Paroz, Switzerland's ambassador to Hungary, noted that the Swiss-Hungarian Cooperation Program has allocated nearly 5 billion Forints for initiatives aimed at improving energy efficiency and utilizing renewable geothermal energy.
Approximately half of these funds will be directed towards Hungary's less developed regions, with a total of 11 settlements receiving support, including Kiskunhalas, which will benefit from approximately 251 million Forints from both Hungarian and Swiss budgets.
Gábor Bányai, the government commissioner responsible for the comprehensive development of the Southern Great Plain, stated that a significant geological formation extends south of Kiskunhalas to the Baja region, concealing numerous fossil energy resources.
He recalled that the potential for utilizing former exploration or production wells in and around Kiskunhalas has been discussed multiple times over the past decades, noting that substantial amounts of thermal energy have been found in depths below 2500 meters.
Robert Fülöp, the mayor of Kiskunhalas, remarked that various companies have attempted to harness geothermal energy in the area over the last 20 years, but none have succeeded so far.
He highlighted that numerous abandoned oil wells surround Kiskunhalas, and this new project may lead to their future utilization, impacting the entire Southern Great Plain region.
During the event, MS Energy Solutions Kft.
announced that it has secured 215 million Forints in support from the Swiss Fund, with approximately 40 million Forints coming from national co-financing, and the company contributing nearly 50 million Forints to the project.
The company's managing director, Mátyás Gáti, detailed that the renewable energy supply for the sports center will utilize the WeHEAT technology, a closed system operated deep geothermal probes, which are integrated into non-producing or exhausted well structures, allowing for efficient heat utilization from the geological layers with minimal losses.
The system developed by MS Energy Solutions is designed to operate in a closed loop, harnessing existing deep well structures in an environmentally friendly manner without geological risks and water withdrawal.
By utilizing an obsolete, non-productive hydrocarbon well, the project aims to eliminate the need for fossil fuels, potentially saving over 100 tons of CO2 emissions annually.
The investment will connect the well and the sports center via a district heating pipeline, employing a water-water heat pump and three heat exchanger stations for heating.
The project is expected to enable nearly 720 gigajoules of geothermal energy production annually.
MS Energy Solutions Kft., based in Eger, employs 12 staff members and reported a net revenue of approximately 271 million Forints in 2023, an increase from 201 million Forints the previous year, and concluded the year with a profit of nearly 40 million Forints, compared to 22 million Forints in 2022.
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