8.7.2010

Construction Begins on Geothermal District Heating Plant in Hungary

An official groundbreaking ceremony marked the beginning of the construction process of the geothermal district heating plant in the town of Szentlőrinc, Hungary. The cornerstone was laid by Mr. Össur Skarphéðinsson, Foreign and External Trade Minister of Iceland, Pál Kovács, Deputy Secretary of Energy Policy from the Ministry of Development and, Dr. Márk Győrvári, the Mayor of Szentlőrinc. This pioneering project is the largest geothermal development enterprise to date in Hungary and will replace the town's existing natural-gas powered district heating system with environmentally-friendly and sustainable geothermal energy.

This project is a collaborative effort between PannErgy Plc, a geothermal development company in Hungary and Mannvit Engineering who is supplying all of the engineering and project management. This occasion is an important milestone in Hungary's move toward utilizing its significant geothermal potential.

This groundbreaking follows an announcement in September 2009, that drilling of the first production well in Szentlőrinc was successful. It is expected that this well will be supplying hot water to the town's district heating system by October, 2010.  In, June 2010, a 15-year agreement was signed, with a five year extension option, between Szentlőrinc Geotermia Zrt., a 90%-owned subsidiary of PannErgy Polifin Zrt. and, the non-profit Szentlőrinci Közüzemi Közhasznú Kft to supply heat energy from the production well to the town's district heating system.