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Hungarian PannErgy receives US$145m credit line from EIB

PannErgy company website snapshot
Alexander Richter Alexander Richter 19 Dec 2010

Hungarian geothermal development company PannErgy has been approved for a EUR110m (US$145m) credit line by the European Investment Bank (EIB) for geothermal heat and power plants.

In exciting news from Hungary it is reported that Hungarian geothermal development company PannErgy has been approved for a EUR110m (US$145m) credit line by the European Investment Bank (EIB).  The credit line is for geothermal energy projects carried out by the company.

The company’s business strategy laid out in 2007, is the basis and is covered by the credit line, which “is expected  to have preferential conditions”. The company states that there still is “a lot of work ahead until the first drawdown, as the company needs to work out the detailed framework and system of rules of the cooperation with the EIB.”, so the PannErgy’s CEO Dénes Gyimóthy.

Applied for in 2007, EIB states the loan to be “a framework loan to support the implementation of up to 30 small-scale heating or combined heat and power (CHP) plants based on geothermal heat resources, all geographically dispersed over Hungary. Heat generated should be supplied mainly to existing district heating system or individual industrial offtakers. Electricity from the CHPs will be supplied to the national grid.”

The loan provided by EIB is to cover up to 50% of the overall project cost of a total of EUR 220m.

Other EIB financed geothermal projects include Olkaria I & IV extension (Kenya),

Source: Budapest Business Journal, EIB