Background The PannErgy Plc’s subsidiary, PannErgy Geothermal Power Plants Ltd (PEGE Ltd) signed a concession agreement with the State of Hungary for a definite term of 35 years (with a nonrecurrent renewal option for another term of 17 and half years) in relation to the area of Győr, towards the exploration, extraction and utilization of […]
The PannErgy Plc’s subsidiary, PannErgy Geothermal Power Plants Ltd (PEGE Ltd) signed a concession agreement with the State of Hungary for a definite term of 35 years (with a nonrecurrent renewal option for another term of 17 and half years) in relation to the area of Győr, towards the exploration, extraction and utilization of geothermal energy.
In February 2017, PEGE Ltd founded its 100% subsidiary, PannErgy Concession Limited Company.
Through the concession agreement, PannErgy Concession Ltd has secured exploration rights for geothermal energy. As part of the concession project, the purpose of the drilling to extract thermal water at temperatures suitable for energy utilization from a depth below 2500 meters with the utilization of the geothermal properties, hydraulic conditions and water-yielding capacities of the deep-lying geological formations of the Triadic dolomite layer.
PannErgy Concession Ltd. examined the concession-based geothermal endowments of the region potentially found under 2500 meters. Following the geological research, the Company has determined the investment options for profitable broadening of heat capacities, and decided on drilling a new geothermal well in order to integrate it into the Geothermal Project of Győr.
On 26 January 2018, the Company received the final building permission on well drilling. Based on the permission, operations started on 17 April aiming to deepen the BON-PE-03 production at the site determined on the basis of the geological studies.
In the drilling operations consisting of three sections of different dimensions, all three sections have been completed in the first half of 2018. Following the extraordinary challenges and difficulties due to the larger well diameter, the BON-PE-03 exploratory drilling has been realized in 2858-meter length and 2577-meter depth in the September 2018.
The test results show that the new thermal water well (BON-PE-03) features excellent hydrodynamic properties, and due to its yield the aggregate thermal water extraction capacity of the Geothermal Project of Győr is expected to be as large as 1100 m3/h, representing more than 20% total capacity expansion in the system.
