Hungary: PannErgy receives outside funding of US$ 6 million

Alexander Richter 13 Nov 2009

Hungarian geothermal developer PannErgy, will inject capital into its geothermal unit along with ONP Holdings SE, which will inject about $6-million to fund drilling projects.

Reported from Europe, “PannErgy, a Hungarian company that left the plastics business to move into geothermal energy, will inject capital into its geothermal unit along with another investor to fund drilling projects.

PannErgy Polifin, the geothermal unit, will get about $6-million from ONP Holdings SE, a unit of Cashline, PannErgy said earlier this week, adding that it will match ONP’s contribution.

The investment will take ONP’s stake in Polifin to 7.4%. In September, PannErgy said a test well drilled in the southern Hungarian town of Szentlorinc had been a “success.” Now PannErgy wants to secure financing to develop the project, the company said. ONP has the option of investing a further $9-million, which could boost its ownership in Polifin to 15%, PannErgy said.”

Source: Bloomberg News