| Abstract |
MOL Hungarian Oil and Gas Plc. launched a Geothermal Pilot Project that aims to establish the first geothermal power plant in Hungary. Three companies, MOL Plc, the Icelandic Enex hf and the Australian (GreenRock) owned Vulcan Kft formed a consortium to finance the Project in which MOL is the operator. The consortium wishes to utilize existing hydrocarbon wells in the South-Western part of Hungary to produce and reinject thermal water. However, the exact flow rate is still unknown because the exploration drilling focused on hydrocarbons initially, therefore thermal water production and reinjection tests were necessary. The wells are 3000 meters deep and the water temperature is expected to be above 135oC at well-heads. Utilizing abandoned hydrocarbon wells, establishing an international consortium for thermal water exploration, the unusual depth, the fairly high temperature (in the European continent), the focus on power plant establishment highlight a new approach in Hungarian geothermal exploration. Besides the exploration activity the Project has some other curiosities as well. Risk management implied partner involvement and the conclusion of an Exploration Grant Agreement with Worldbank-GEF. Geothermal projects are not competitive with hydrocarbon projects, therefore all possible ways of financial support and subsidy are inevitable. In case the exploration is successful as a result of the partners? efforts the first Central-Eastern European geothermal power plant can be established in Hungary. |