At the onset of their cooperation, the initial concept of the Municipality of Miskolc City of County Rank and PannErgy Plc was that the natural gas consumption and hazardous material emission of the city’s central heating plant could be decreased with reliance on renewable energy, which would ultimately ensure a cleaner and more liveable city for the inhabitants of Miskolc.
MIHŐ Ltd owned by the Municipality and PannErgy jointly decided to found a project company, Miskolc Geothermal Ltd in August 2009 with the intention to supply a large proportion of heat to one of Hungary’s largest cities from renewable resources.
The potentials to utilize geothermal energy for district heating purposes were already mapped and identified in the years before the commencement of the investment, the studies and tests were concluded with reliable results.
Description of the project
The positive outcomes that PannErgy Group encountered in the autumn of 2010, in the course of drilling the first well went beyond the expectations.
The thermal water reserve in the Mályi Well lay at a depth of approx. 2300 meters, and the resurgent water served as an excellent basis for further drilling operations in terms of both yield (150 l/s) and temperature (105°C). In addition to the existing production well, a new production and three reinjection wells were made. The technical goal of the investment was to feed geothermal energy to the heating system of Miskolc’s Avas district situated the nearest to the facilities in order to supply heat to the prefabricated buildings of the local housing estates.
The heat output of the thermal wells are transmitted to the heat consumers via pipelines and heat exchangers, while after cooling down the fluid is reinjected. One of the fundamental requirements of the operation of the system was that as depending on the momentary demands for heat output the system could be regulated by controlling water production by the pump of the thermal well and the water-carrying performance of the accelerating pumps. Towards this end, at a number of points measurements had to be performed to determine the temperature, pressure and volume flow rate values as means of managing the geothermal heating plant via the central remote surveillance system.
For the implementation of the Geothermal Project of Miskolc, PannErgy Group received non-repayable grants in a combined amount of more than HUF 1.7 billion from the European Union’s European Regional Development Fund and grant schemes funded from Hungary’s central budget.
On 7 May 2013, Zsuzsanna Németh, Minister of National Development and Dr. Ákos Kriza, Mayor of Miskolc City of County Rank jointly started the geothermal heat supply system that had been implemented within the framework of the Geothermal Project of Miskolc, which indicated the commencement of heat supply to the City of Miskolc. At the same time, the move launched the operations of the largest geothermal heating plant of Central Europe.
The Geothermal Project of Miskolc has been recognized with GeoPower Market’s international prize “Best Heating Project 2013”.
The system for the utilization of geothermal heat consists of the following, easily distinguishable and geographically separate partial units:
- Production wells in Mályi with pumps, filters, degassing equipment, water treatment units
- Thermal water lines between the production wells in Mályi and the District Heating Center of Kistokaj
- District Heating Center of Kistokaj
- Reinjection pipeline system
- Reinjection wells of Kistokaj
- Phase I of the secondary pipeline – District Heating Center of Avas
- Phase II of the secondary pipeline – District Heating Center in Tatár Street
As a result of the Geothermal Project of Miskolc, since May 2013 the dominant part of the district heat provision of Avas in Miskolc and HMV’s supply has been covered from geothermal sources with summer and winter heat outputs of 5–8 MWth and 30–35 MWth, respectively.
Constructed in the second phase of the Geothermal Project of Miskolc, the District Heating Center in Tatár Street was jointly opened by the mayor of Miskolc City of County Rank, Dr. Ákos Kriza, Miskolc Heat Distribution Ltd’s managing director, László Nyíri and PannErgy Plc’s chief executive officer, Péter Tóth on 9 September 2014 .
In the second phase of the Geothermal Project of Miskolc, a heat transmission line was constructed to the Tatár Street Heat Works, where a new heat transfer station was also built in order to carry heat energy from geothermal sources to the downtown consumers. With the use of the European Union fund, i.e. the HUF 1 billion non-repayable grant awarded on 20 September 2013, there is now an option to cover the heating and sanitary hot water demands of the Downtown and University District of Miskolc partly from geothermal energy. The investment makes the annual volume of 780,000 GJ primary heat output specified in the initial plans achievable. The live operation of the second phase was commenced at the beginning of the 2014 heating season.
For secondary heat utilization, PannErgy Group has been conducting negotiations with a company establishing itself in the southern part of Miskolc, by the route of the geothermal transmission lines. The 7000 sq m foil greenhouse erected by a subsidiary of the Municipality of Miskolc City of County Rank, Miskolc Városgazda Nonprofit Ltd was connected to the geothermal system at the end of 2013 to involve agricultural production into geothermal energy utilization.
In accordance with the agreement signed with the Japanese-owned GS Yuasa Hungary Ltd the Japanese GS Yuasa Hungary Ltd., the geothermal heat supply is expected to start in November. PannErgy Group has undertaken to invest in the power-line necessary for the heat supply until the installation of the isolation heat exchanger in the plant’s thermal center.
The geothermal heating plant system is comprised by two hydraulic loops:
- geothermal loop: insulated district heating transmission line connecting the production wells and reinjection wells,
- secondary loop: insulated pair of transmission lines connecting the thermal heat exchanger station to the Avas Hydraulic Station.
|Heat capacity:||50-60 MW|
|The annual volume of heat that the system can deliver - as depending on the prevailing weather conditions - is||800-950 TJ|
|Number of production wells:||2|
|Average temperature:||95 °C|
|Yield (all wells):||1080m3/h|
|Start of operation:||2013 Q2|
|CAPEX:||28 million EUR|
|Name of well||Depth||Fluid temperature||Yield||Absorption capacity|
|MAL-PE-01 production well||2305 m||102,2 °C||0m3/h (530m3/h)||-|
|MAL-PE-02 production well||1514 m||87,2 °C||277m3/h (530m3/h)||-|
|KIS-PE-01 reinjection well||1737 m||-||-||30-40m3/h|
|KIS-PE-01B reinjection well||1093 m||-||-||550-590m3/h|
|KIS-PE-02 reinjection well||1058 m||-||-||530m3/h|
One of the key conditions of any geothermal project is the availability of an appropriate water reserve, as well as – in addition to successful exploration and drilling – firmly established principles of cooperation with the local government. The utilization of the generated energy in the local district heating systems calls for a legally and economically steady business, funding model. In view of mutual benefits, PannErgy Plc has succeeded in developing an appropriate framework in this context. They create a jointly owned, local project company with the partnering local government.
In November 2008, together with the Municipality of Szentlőrinc PannErgy Geothermal Power Plants Ltd founded a project company called Szentlőrinc Geothermal Ltd.
Description of the project
As a result of the successful drilling operations that were commenced in the spring of 2009, the water brought up from the 18000-meter deep well has approx. temperature of 86 °C, while its yield exceeds 25 l/s. With the given volume of geothermal heat energy originating from the Szentlőrinc well, the former natural gas-based district heat supply of Szentlőrinc could be fully replaced.
In June 2010, Szentlőrinc Geothermal Ltd entered a contract with the Municipality of Szentlőrinc for 15 years, with a five-year extension option, and in this context heat energy from geothermal resources is now delivered to the district heat supplier operating the town’s district heat supply system. Since January 2011, as a result of the project – i.e. the creation of a geothermal heating system of a production and a reinjection well for 3 MW useful heat capacity – about 900 apartments have been heated with geothermal energy, which is cheaper than gas, and does not contaminate the environment at all.
A further goal is to increase the volume of primary energy used from the current 20–21,000 GJ p.a. level, while the secondary heat energy could also be utilized. The potentials for the exploitation of unutilized capacities are currently being assessed.
The implementation of the project will moderate dependence on imported energy at the level of the town of Szentlőrinc, and enhance domestic value creation via the use of an energy carrier that is produced in Hungary. With the use of renewable energies, greenhouse gas emission is reduced by some 26 tons annually, primarily meaning the reduction of carbon dioxide and nitrogen oxide levels. With the given energy savings and reduced quantity of hazardous material emission, the project promotes sustainable development.
|Heat:||~ 21000 GJ p.a.|
On 30 September 2010, PannErgy Geothermal Power Plants Ltd signed a purchase contract for the acquisition of the 100% stake of Berekfürdő Energy Production and Services Ltd. As a result of the transaction, PannErgy Group has added a power plant burning the methane content of thermal water and the connected technological expertise to its alternative energy portfolio.
As an entity belonging to PannErgy Group, Berekfürdő Energy Ltd generates electric power from the methane extracted from geothermal sources, and sells heat to local customers.
Description of the project
The project has 320 kW electric power output, whereas its heat output is 450 kW.
With the investment, Berekfürdő Energy Ltd uses the methane accompanying gas originating from the thermal wells of Berekfürdő for the generation of electric power and heat, and then sells the produced energy: the electric power is fed into the national grid, whereas heat is used for the heating of the public swimming facilities and the surrounding public buildings. In the framework of the project, the accompanying gas containing 90–95% methane is separated from the thermal water, and then transmitted via a closed internal pipeline network to the small power plant in order to be burnt for energy generation. The necessary equipment is installed in a purpose-built facility designed to harmonize with the given environment, and therefore the potential noise level also remains at the minimum.
Beside the prevention of pollution, the goal of the investment has been the domestic production of energy from an environmentally friendly source. The implementation of the project reduces the emission of greenhouse gases, as the gas-utilizing equipment releases only water vapor, as well as carbon dioxide, which is still much less harmful to the climate than methane. The plant cuts back the degree of pollution to the environment, as well as the dependence of the region and at the same time Hungary on fossil, imported energy carriers.
Deemed to be sustainable for long, this investment forestalls a considerable volume of greenhouse gas emission, as the quantity of methane released will drop by 470 tons. In consequence – with respect to the indirect impacts caused by the energy generation of the small power plant –, the emission of greenhouse gases will be smaller by some 12 thousand tons when expressed in carbon dioxide equivalent.
|Electric power:||2.300 MWh p.a.|
|Heat:||~10.000 GJ p.a.|
Under the grant application scheme KEOP-2012-4.10.0/B, “Satisfaction of local heat and/or cooling demands with the use of renewable energies” announced within the framework of the Environment and Energy Operational Programme of the New Széchenyi Plan and utilizing funds from the European Union, the proposed project of Arrabona Geothermal Ltd owned by PannErgy, i.e. “Economic renewal with the utilization of geothermal energy in Győr” has been awarded with a non-repayable grant of approximately HUF one billion.
Under the grant application scheme KEOP-2012-4.10.0/B, “Satisfaction of local heat and/or cooling demands with the use of renewable energies” announced within the framework of the Environment and Energy Operational Programme of the New Széchenyi Plan and utilizing funds from the European Union, the proposed project of DD Energy Production and Services Ltd owned by PannErgy Plc’s business entity has been awarded a HUF one billion non-repayable grant.
Description of the project
On 20 December 2013, DD Energy Production and Services Ltd entered an agreement with AUDI HUNGARIA MOTOR Ltd for the supply of clean, geothermal heat energy for 17+15 years. The Parties have accepted that the services contemplated in the agreement that has been signed by the two companies can be renewed for an additional term of 15 years.
On 25 September 2014, Arrabona Geothermal Ltd entered into a 15-year heat supply contract with GYŐR-SZOL Győr Public Services and Assets Management Ltd (GYŐR-SZOL Ltd).
On 24 November 2015, Zoltán Németh, Chairman of Győr-Moson-Sopron County Council has opened the Ceremony of PannErgy’s Geothermal Project of Győr – with total cost of HUF 10.2 billion, by the initiation of the Bőny Heating District. As per the long-term heat supply agreement between PannErgy Goup and Győr-Szol Ltd., in the heat distribution services of Győr, 24 266 households and 1 046 other customers will be supplied with geothermal energy, furthermore, minimum 60% of the AUDI Plant’s heating energy will be covered by the energy supplied by the Bőny Heat Distribution Center.
Simultaneously with the ceremony, test operations at PannErgy subsidiaries’ systems, Arrabona Geothermal Ltd. and DD Energy Ltd. are taking place together with heat off-taker partners, Győr-Szol Ltd. – heat distribution supplier of Győr County-City – and Audi Hungaria Motor Ltd. After few weeks of test operations, full-powered heat supply will commence.
At the beginning of 2014, DD Energy Ltd. and Arrabona Geothermal Ltd. have started the Geothermal Project of Győr by the drilling of the first wells. The investment consisting of two production wells and two reinjection wells, the Heat Distribution Center of Bőny, the geothermal heat transfer system of 17 km’s pipelines, has the total investment value of HUF 10.2 billion and was partially financed by own resources and partially by non-refundable European Union grants (in the total value of HUF 2 billion) and by the financing facility provided by Eximbank.
The system of Győr, commenced today, with full capacity is able to decrease the emission and so the quantity of the greenhouse gases – primarily carbon-dioxide, nitrogen-oxides – by approximately 67 000 tonnes on a yearly basis. Furthermore, geothermal energy decreases the use of natural gas, with full capacity, by 35 million m3 on an annual basis, therefore contributing to the achievement of the goals set by the National Energy Strategy.
Efficiently drilled in the framework of PannErgy Concession Ltd’s concession investment a system consisting of three production wells has been implemented in October 2018, (unprecedented in Hungary)
The results indicate that in terms of energy volume equivalent the system approximates the earlier targeted 1100 m3/hour increase in the combined thermal water extraction capacity by featuring a maximum yield of only 1065 m3/h, while the temperature measured on the secondary line (towards AUDI and Győr-Szol) is approximately higher by 1 (one) Celsius degrees, (difference between the average inlet and outlet temperature (ΔT) that is directly proportional to the volume of energy, and is therefore higher by 2.1%), and therefore the green heat volume that can be delivered is at 98,9% of the expected level.
Other technical parameters of the Geothermal System of Győr consisting of three extraction wells
Geothermal Project of Győri in numbers:
- Heat capacity: 52 MW
- The annual volume of heat that the system can deliver – as depending on the prevailing weather conditions – is 860-900 TJ
- Number of production wells: 3
- Average temperature: 101-102 °C
- Yield (all wells): 1060-1080m3/h
- Start of operation: Q4 of 2015
- CAPEX 40 million EUR
Introduction of the Geothermal system:
The geothermal heat energy system consists of the following geographically separated parts:
- Bőny production wells (3 pieces)
- Production pipes between wells of Bőny and Heat Distribution Centre of Bőny
- Heat Distribution Centre
- Reinjection pipe system between the Heat District of Bőny and reinjection wells of Pér
- Reinjection wells of Pér (2 pieces)
- Secondary pipeline to Győr-Szol Heat Distribution Centre
- Secondary pipeline to Audi Heat Distribution Centre
The full length of the network track is 17 kilometres
Parameters of the wells:
- BON-PE-01 productive aquifer: 2 450-2 470 m, fluid temperature 100,3 Celsius degree, yield: 280m3/h (320m3/h-340m3/h
- BON-PE-02 productive aquifer: 2 430-2 450 m, fluid temperature 100,1 Celsius degree, yield: 0m3/h (260m3/h-320m3/h)
- BON-PE-03 productive aquifer: 2 500-2 580 m, fluid temperature 102 Celsius degree, yield: 800m3/h (340m3/h-430m3/h)
- PER-PE-01 reinjection well depth: 2 296 m, capacity: 609m3/h
- PER-PE-02 reinjection well depth: 2324 m, capacity: 541m3/h