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PannErgy continues growth of its geothermal heating business in Hungary

PannErgy continues growth of its geothermal heating business in Hungary Györ geothermal district heating plant, Hungary (source: PannErgy)
Alexander Richter 15 Sep 2017

Focusing on the rationalisation of existing assets and their extension, PannErgy is continuing the growth of its geothermal heating business in Hungary as reported in the half-year report for 2017.

In 2017, Hungary-based PannErgy Group has continued the accomplishment of the objectives set out in its geothermal energy production and utilization strategy, which during the half-yearly period under review meant the fine tuning of the conditions and operations of the geothermal projects at the four project locations of the Group (Miskolc, Györ, Szentlörinc and Berekfürdö) for the further improvement of efficiency.

Owing to its continuous operations successfully keeping the optimum level in focus, PannErgy Group’s commercial activities in the first half of 2017 achieved consolidated heat sales in a total volume of 844,915 GJ, representing 19% improvement in comparison to the 708,165 GJ heat sales in the corresponding period in the previous year.

This growth is primarily due to the successful operation of the Geothermal System of Györ, as well as the positive outcomes of last year’s investment program targeting the 960 m3 /h maximum capacity in thermal water yield. During the period under review, a goal was to eliminate the operating difficulties that the system was struggling in the same period last year by identifying the particular properties, unforeseeable chemical and physical reactions in the well system of Györ.

Beyond the effective operation of the Geothermal System of Györ, PannErgy Group succeeded in enhancing productivity and increasing heat sales at another major project, the Geothermal System of Miskolc in spite of the fact that the extremely cold weather in the first quarter of 2017 did not favour the volume of heat input.

Because of the unusually cold weather in May, the heating season of 2016/2017 came to its closing only in the middle of May 2017, after which the maintenance, reconditioning works to be completed during the summer could be started, while in Györ – in line with the concession agreement – geological research followed with the first phase seeing seismic measurements in June 2017.

The company continues its efforts on the rationalization of portfolio elements in line with the strategic goal of the company to focus its resources on already operating projects and their further development.

In this context, CSRG Energy Ltd was demerged, and with the demerger the earlier minority participation was terminated with the effective date of 30 May 2017, PannErgy Geothermal Power Plants Ltd became the Company’s sole owner. Furthermore, two subsidiaries, PannErgy Geothermal Power Plants Ltd and PMM Ltd were amalgamated, in the course of which PMM Ltd was merged into PannErgy Geothermal Power Plants Ltd with the effective date of 31 August 2017.

In February 2017, PannErgy Group’s entity, PannErgy Geothermal Power Plants Ltd signed a concession agreement with the State of Hungary for a definite term of 35 years in relation to the area of Györ, towards the exploration, extraction and utilization of geothermal energy. Following the conclusion of the concession agreement, on 17 February 2017 PannErgy Concession Ltd was founded, and with reliance on the rights acquired with the concession agreement the concession company set out to examine the concession-based geothermal endowments of the region potentially found under 2500 meters, and thereafter will decide on the investment opportunities for the potential, further, profitable broadening of heat capacities. In association with the concession project, the Technical Operating Plan for Researching Minerals became effective on 26 May 2017 to serve as the basis of the commencement of geological research in line with the concession agreement.

Source: PannErgy