Towards a climate neutral EU:
efficient allocation of EU funds

Narrative

Szeged, in South Hungary is set to have Europe's second largest geothermal residential district heating system after Reykjavik, thanks to a development under the Environment and Energy Efficiency Operational Programme. The aim of the development is to move towards a low-carbon economy by partially converting the city’s fossil gas district heating system to a decentralized, environmentally friendly, renewable energy source. It consists of the implementation of 9 geothermal systems, each consisting of one extraction well and two re-injection wells. The project is about to replace more than 2.2 million m3 of (Russian) fossil gas per year with 68,203 GJ of geothermal energy and, taking into account the additional electricity consumption, will reduce the GHG emission of the city of Szeged by 4 416 tonnes (CO2 eq) per year. The investment halves the amount of fossil gas usedn the city of Szeged and the related CO2 emissions, and it supplies heating to 96% of the homes with district heating in the city, meaning 27 000 homes, and about 500 institutions. The geothermal development utilized all non-fossil-specific elements of the existing district heating system, making it cost-efficient.

Financial data

Total: ~ 60 000 000 Euro (EU funding: 60%)

Recommendations

Exploit the renewable use (i.e. re-injecting the extracted thermal water after its use into the ground) of geothermal energy in Hungary to the maximum potential to replace fossil fuel consumption and strengthen energy security. Especially support underdeveloped regions, where investment costs would not be financed by commercial banks, and where a stable source of locally produced renewable energy could boost local economy and the creation of jobs. In developed regions and bigger cities, such investments can be carried out with private financing too, as the return on investment is guaranteed.

Information sources

Other info

http://geohoterm.hu/

https://hu.euronews.com/2022/07/11/a-kontinentalis-europa-legnagyobb-geotermikus-tavfutorendszere-epul-szegeden