Hungary to open tender for three geothermal exploration licenses

Hungary to open tender for three geothermal exploration licenses View over Budapest, Hungary (source: flickr/ Rodefeld, creative commons)
Alexander Richter 10 Aug 2013

Hungary is opening a tender for three geothermal exploration licenses in the eastern and southeastern part of the country in an increased effort to decrease its dependence on foreign imports for its energy demand.

Reported earlier this week, Hungary has invited bids from both foreign and domestic companies for three geothermal exploration licenses, as part of a combined oil and geothermal tender.

The country is looking at easening its dependence on imports for its energy needs.

The geothermal licenses are in the eastern and southeastern parts of the country, according to a statement by the Ministry of National Development. 

The geothermal energy concessions up for bid are for located in Jászberény, Ferencszállás and Kecskemét in the eastern/ southeastern part of Hungary. Deadline for the applications in November 15, with awarding of the tenders to be announced by mid-February 2014. They are valid for 35 years with possible extension.

Prime Minister’s Office Chief Advisor Réka Szemerkényi emphasized the crucial role of these tenders in “support[ing] the country’s economic performance,” in “increasing energy supplies” and in “the diversification of our energy resources.”

Climate and Energy Affairs Minister Pál Kovács reported at a conference in June this year, that the role of mining in Hungary called for a re-evaluation, with his statistics showing that 62% of the country’s energy consumption is currently based on imported fossil fuels, while 82% of natural gas is imported.

“Hungary is not a poor country in energy reserves,” Kovács stated at that time. “Use of our hydrocarbon reserves and geothermal potential can significantly improve Hungary’s security of supply in the long term and substantially reduce its dependence on imports.”

Hungary imports most of its supplies from Russia, mostly gas for heating purposes.

Source: Reuters via Rigzone, Budapest Business Journal