Hungary (50% owned)

"With existing power infrastructure, electricity pricing incentives and a strong growing demand for clean renewable energy, Hungary is a commercially attractive location for geothermal projects."

Hungary Transmission Line Map

Our Objective

To become the market leader in geothermal energy in Hungary through the exploration and development of geothermal power plants and the subsequent production and sale of geothermal sources of electricity into the Hungarian market.

In Hungary we are pursuing projects for electricity production and direct heating.

The Joint Company

Green Rock Energy, along with MOL Plc, are equal shareholders in the Hungarian geothermal energy company, Central European Geothermal Energy Private Company Limited (CEGE).

MOL Plc. is a major European oil and gas company which holds the largest hydrocarbon leases in Hungary. CEGE consolidates the strong relationship between the two companies for the exploration and development of geothermal energy resources in Hungary.

CEGE's mission is to become a market leader in geothermal energy in Hungary through the exploration and development of geothermal power plants and the subsequent production and sale of geothermal sourced electricity into the Hungarian market.

Central European Geothermal Energy Private Company Limited

1117-H, BudapestInfopark D. ép.Gábor Dénes u. 2.
T: (+36 1) 464 9558

The Location

Hungary currently has direct heat projects but no electricity production from geothermal energy although the region in and around Hungary, the Carpathian Basin, has significant geothermal potential.

The Carpathian Basin in Hungary is known from petroleum drilling carried out by MOL to have very favourable geology with abundant natural geothermal water with temperatures ranging between 120°C to 200°C. These high temperatures, at reasonable depths between 2.5 to 4 kilometres, are due to the abnormall thinness of the earth's crust compared to the World average.

Hungary is a member of the European Union. The Hungarian Government has introduced policies to encourage the use of renewable energy. As part of the Kyoto Protocol, Hungary agreed to decrease its annual CO₂ emissions by six per cent between 2008 and 2012 as compared to the reference period of 1985 to 1987, with a renewable energy sourced electricity target of 20 per cent of total electricity produced by 2020.

Activities

Some promising geothermal prospects in Hungary have been identified from the evaluation of MOL's extensive petroleum well data and seismic mapping. Detailed evaluation has been undertaken to determine the precise locations for drilling geothermal wells at these prospects, in conjunction with the processes for obtaining formal title to geothermal tenements.

Work continued on well selection for the first project for electricity production. A project area has been selected by CEGE to carry out flow testing of geothermal water intersected in an existing well. This project area was selected where power production could be achieved in the shortest time frame and at lowest cost using existing wells and technology. Success with this can lead to other existing wells in Hungary being brought into production followed by new larger wells to generate more electricity.