1. Gábor Szita mechanical engineer Hungarian Geothermal Association (HGA) - President New Direct Heat Geothermal Systems in Hungary

2. Number of Deep Geothermal Drillings Energetics Baths New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association International Geothermal Workshop, RENEXPO, May 6 2011

3. Reasons related to the natural gas –High dependency –High price –Ukrainian-Russian gas dispute Availability of financial support Geothermal projects may fulfil the requirements for the support The basic formula High gas price Support Geothermal Projects Driving Forces behind the Acceleration New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

4. International Geothermal Workshop, RENEXPO, May 6 2011 Environment and Energy Operative Programme Main conditions: –Support only for the investment costs –The share of the support depends on the region the applicant (local authorities are preferred) the size of the project the (extra) revenues provided by the project the profitability of the project 10% < SUPPORT < 85% Support Programme New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

5. International Geothermal Workshop, RENEXPO, May 6 2011 Environment and Energy Operative Programme Other important conditions: –Not available for agricultural entities –Strict scoring system – easy to loose, hard to collect points –IRR must be > 0 (for 15 years) –High quality feasibility study is required Support Programme New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

6. International Geothermal Workshop, RENEXPO, May 6 2011 A support programme appeared in April, 2008 Many applicants and winners Very slow process Gardeners started to drill geothermal wells on their own finance. Geothermal Boom in the Horticulture New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

7. New Hungary Rural Development Programme 2007-2013 Total number of applications for horticultural modernisation 585 Applications referring thermal water utilisation 38 Successful applications 28 Sum of subsidies: 16 M € Unsuccessful or progressing applications 10 International Geothermal Workshop, RENEXPO, May 6 2011 New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

8. International Geothermal Workshop, RENEXPO, May 6 2011 New Geothermal Projects New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association Operating systems Shortly under construction Successful application for support Application submitted

9. Location Cost of the project (M €) Support rate Veresegyház-11.240 % Bóly-11.660 % Kistelek1.885 % Gárdony1.9 50 % Mórahalom2.050 % Szentlőrinc3.747 % Orosháza-12.250 % Veresegyház-22.660 % Mezőberény2.660 % Csongrád1,736 % Bóly-20,355 % Miskolc2,550 % Erdőkertes1.550 % Törökszentmiklós2.050 % Makó3,649 % Szolnok2,0100 % Csurgó1.8 Orosháza-24,4 Debrecen1,9 Hegykő0,4 Sum:41.7 New Geothermal Projects International Geothermal Workshop, RENEXPO, May 6 2011 New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association Operating systems Shortly under construction Successful application for support Application submitted

10. Bóly 200 km International Geothermal Workshop, RENEXPO, May 6 2011 Geothermal Energy Utilisation in Bóly New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

11. 2,7 km Exploration well 1982 depth: 1302 m Triassic limestone narrow casing wellhead temp.: 75 o C drinking water low CO 2 content Geothermal well 2004 depth: 1800 m screened section: ~700 m Miocene limestone wellhead temp.: 42 o C total salt content: 1300 mg/l CH 4, CO 2 International Geothermal Workshop, RENEXPO, May 6 2011 Preliminaries New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

12. Target: Heat supply for all public facilities based on geothermal reservoir explored by the drilling in 1982 Preparation steps: –Procurement of necessary permits (water management and environmental) –Elaboration of a feasibility study –Applying for state subsidy –Waiting for considering the application –Signing the subsidy contract –Preparing the tender documentation Project owner: Municipality of Bóly International Geothermal Workshop, RENEXPO, May 6 2011 Project Preparation New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

13. 2 new thermal wells (1500-m borehole depth expected) –1 production well –1 injection well Geothermal technology: submersible pump, tanks, supply and injection pumps, filters, etc. Total length of the transmission and distribution pipe-line: 7 km Geothermal substations at 15 different places: heat exchangers, control valves, measure and control gauges, etc. Civil works: 2 small pump houses, manholes Electric works: electric supply, switches, breakers, etc. Automatic control and monitoring system, communication: hardware and software Construction start-up:July 2007 Operation start-up: November 2008 International Geothermal Workshop, RENEXPO, May 6 2011 Description of the Project New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

14. Combined consumer Primary consumers Secondary consumers EXPLOITATION 75-80 o C REINJECTION 40-50 o C 25-38 o C International Geothermal Workshop, RENEXPO, May 6 2011 Conceptual Design New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

15. Production well 2008 depth: 1590 m Triassic limestone wellhead temp.:80 o C flow rate: 60 m3/h submersible pump Injection well 2007 depth: 1497 m Triassic limestone International Geothermal Workshop, RENEXPO, May 6 2011 Site Plan with Wells and Pipe-lines New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

16. International Geothermal Workshop, RENEXPO, May 6 2011 The Three-Pipe System 1.Grammar School 2.Library 3.Public House 4.Children’s Home 5.Kindergarten 6.Old People’s House 7.Health Centre 8.Culture House 9.Youth Hostel 10.Town Hall 11.Kolping House 12.Office Block Primary consumer Mixed consumer Secondary consumer New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

17. Result: 30% more energy extracted from the same amount of geothermal water International Geothermal Workshop, RENEXPO, May 6 2011 Experience during the First Heating Season New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

18. International Geothermal Workshop, RENEXPO, May 6 2011 Bóly – Pictures from the Construction New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

19. International Geothermal Workshop, RENEXPO, May 6 2011 Organisation of 6 workshops. Publishing a quaternary newsletter for the members. Successful negotiation with the Ministry of Environment and Water in 2005-2006. Giving opinion on new measures and programmes related to geothermal. Explaination for the original meaning of the word „THERMAL”, used in European languages in geothermal. Activity of HGA since 2003 New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

20. Hungarian Geothermal Association Address 1021 Budapest, Ötvös János u. 3. Phone: (1)-224 0424, fax: (1)-214 5953 E-mail: info@mgte.hu, szitag@mgte.huszitag@mgte.hu Web: http://www.mgte.hu Thank you for your attention!