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Hungarian PannErgy unit starts construction of district heating project

Palace of Szentl?rinc, Hungary (source: commons/ Wikimedia, Civertan Grafikai Stúdió)
Alexander Richter 10 Jul 2010

Hungarian geothermal development company PannErgy, listed on the Hungarian Stock Exchange has announced that its subsidiary Szentl?rinci Geotermia, a 90% unit of PannErgy Polifin laid the cornerstone for a geothermal district-heating plant in Szentl?rinc, this week.

Hungarian geothermal development company PannErgy, listed on the Hungarian Stock Exchange has announced that its subsidiary Szentl?rinci Geotermia, a 90% unit of PannErgy Polifin laid the cornerstone for a geothermal district-heating plant in Szentl?rinc, this week.

The plant is scheduled to be providing district heating for public institutions as well as 1,000 homes in the town from November.

Szentl?rinci Geotermia has signed a 15-year thermal energy supply contract in June this year with the local district-heating provider, which is 100% owned by the city council. The agreement can be extended by a further five years.

PannErgy CEO Dénes Gyimóthy said this is the biggest enterprise so far in Hungary to exploit geothermal energy. He added that the project had won HUF 442 million in funding from the Environment Protection and Energy Operative Program KEOP.

This is PannErgy’s first successful geothermal drilling. PannErgy has set up joint companies with dozens of municipalities for exploration and energy supply. Their strategy aims to create 20 facilities and at least 60MWs worth of energy-production capacity.

The event was attended by Iceland’s foreign affairs and foreign-trade minister Ossur Skarphedinsson. The Icelandic Mannvit, earlier VGK Honnun is PannErgy’s strategic partner in geothermal energy exploration.”

Source: Budapest Business Journal