New Direct Heat Geothermal Systems in Hungary - Gábor Szita, HGA President

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

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

3. The basic formula High gas priceSupport Geothermal Projects Driving Forces behind the Acceleration • 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 International GeothermalWorkshop, RENEXPO, May 6 2011 New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

4. Support Programme 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 International GeothermalWorkshop, RENEXPO, May 6 2011 10% < SUPPORT < 85% New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

5. Support Programme 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 International GeothermalWorkshop, RENEXPO, May 6 2011 New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

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

7. New Hungary Rural Development Programme 2007-2013 Unsuccessful or progressing applications • 10 • Sum of subsidies: 16 M € International GeothermalWorkshop, RENEXPO, May 6 2011 New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

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

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

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

11. Exploration well 1982 • depth: 1302 m • Triassic limestone • narrow casing • wellhead temp.: 75oC • drinking water • low CO2 content Preliminaries • Geothermal well 2004 • depth: 1800 m • screened section: ~700 m • Miocene limestone • wellhead temp.: 42oC • total salt content: 1300 mg/l • CH4, CO2 International GeothermalWorkshop, RENEXPO, May 6 2011 2,7 km New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

12. Project Preparation • 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 GeothermalWorkshop, RENEXPO, May 6 2011 New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

13. Description of the Project • 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 International GeothermalWorkshop, RENEXPO, May 6 2011 • Construction start-up: July 2007 • Operation start-up: November 2008 New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

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

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

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

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

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

19. Activity of HGA since 2003 • 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. International GeothermalWorkshop, RENEXPO, May 6 2011 New direct heat geothermal systems in Hungary - Gábor Szita, president of Hungarian Geothermal Association

20. Hungarian Geothermal Association Thank you for your attention! 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.hu Web: http://www.mgte.hu www.mgte.hu