Hungary: Veolia's Expansion Veolia Buys Major Biomass Plant in Hungary

Veolia expands its renewable energy activities in Hungary through the acquisition of the Szakoly biomass power plant.

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Veolia, through its subsidiary Veolia Energy Hungary Co. Ltd., has acquired DBM Zrt, the company that owns the Szakoly biomass power plant. With this acquisition, Veolia now owns and operates the fifth largest power plant in Hungary producing electricity purely from biomass, which generates an annual revenue of €16.7 million. Following the power plants of Pécs and Dorog, the Group pursues its development in the production of renewable energy in Hungary.

The Szakoly power plant, which started its activities in 2009, produces electricity from the combustion of woodchips and sawmill by-products. With a capacity of 19.8 MW it produces 130 GWh of electricity per year for the national grid, the equivalent of the annual consumption of 50,000 households in Hungary.

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“In Hungary, Veolia has been a forerunner in the field of renewable energy production from biomass through its power plants in Pécs and Dorog. I am delighted by the takeover of the Szakoly biomass power plant, which strengthens our position and anchors our presence in eastern Hungary, where we have already been operating the Debrecen and Nyíregyháza power plants since 2015,” said Chief Executive Officer, Veolia Hungary, György Palkó.

“Our target is the long-term efficient and successful management of the power plant, which employs 55 people,” said Head, DBM Zrt, Attila Vollár. “We are exploring further developments, including cogeneration. The heat produced during the generation of electricity could be used for heating greenhouses in partnerships with fruit and vegetable producers.”

In 2015 in Hungary, 10.5 per cent of gross electricity produced was from renewable energy sources. “Biomass represented 52 per cent of the renewable energy sources, which can be further increased by the continuous operation of the Szakoly power plant,” added Vollár. It will contribute to the achievement of Hungary’s targeted 14.65 per cent share of renewable energy sources in gross energy production by 2020.

Background

In Hungary, Veolia operates power plants and heating networks, notably for the cities of Pécs, Dorog, Esztergom and Tata. In Pécs, Veolia operates the largest 100 per cent biomass cogeneration heating network in Europe, which is supplied by straw and wood. Veolia in Hungary produces more than 600 GWh of electricity a year, which is the equivalent of the annual consumption of 230,000 households, and supplies 121,000 households with heat.

Veolia also provides energy services to more than 30 industrial customers as well as for buildings. Veolia Energy Hungary Co. Ltd. has acquired DBM Zrt from its former owner NRG Power Szakoly Kft. The transaction has been approved by the competition authorities.

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