Geothermal heating system of Kiskunhalas
The project targeting the utilization of geothermal heat involves a significant expansion of the existing district heating system of the town. The current district heating system provides 1248 apartments and a kindergarten with heating and hot water use, while a significant number of additional public institutions will also join the geothermal system. The project will constitute of two main phases, out of which the first phase, the development of the production and reinjection wells required for the construction of geothermal system has commencted due to the financial award granted in May 2016.
Within the frame of the EGT Financing Mechamism 2009-2014, Iceland, the Monarchies of Lichtenstein and Norway, as donating governments contribute to the implementation of the Renewable Energy Programme. The terms and conditions of implementing the Programme are set forth in the Programme Agreement concluded by the Financing Mechanism Committee and the Presidency. In order to comply with the provisions of the Programme Agreement, a call for proposal in the award procedure „Implementation of district heating systems based on geothermal energy – transformation of fossil based district heating service already in place” has been published. The proposal of Geothermal Project of Kiskunhalas Ltd (in Hungarian: Kiskunhalasi Geotermikus Projekt Korlátolt Felelősségű Társaság) was successful in the award procedure for the implementation of its project „Utilization of geothermal heat in the district heating system of the town of Kiskunhalas” for which it was granted financing.
Aims of the Project
The main goal of the project is to transform the current district heating system from a fossil based to a geothermal based system in the town of Kiskunhalas. The envisaged geothermal system consists of a production and a reinjection well. The project will also include various project management, informative and awareness raising activities.
The development will be divided into phases in order to minimize financial and scheduling risks. The development of the project will commence with the drilling of the first production well and the installation of the well pump (Phase 1), followed by the drilling or purchasing of the reinjection well, as well as the construction of the system above the surface (Phase 2). After the completion of Phase 2 the geothermal system will commence its operation.
Phase 1: Drilling of first well
The current project constitues the implementation of Phase 1.
In Phase 1 the geothermal fluid is extracted from the production well at an outflow temperature of 115 C and a maximum outflow velocity of 40 l/s. With the drilling of the first geothermal well we pass the geological and drilling risks of the project and ensure the market financing feasibility of the project. Following the confirmation of the forecasted reservoir parameters, the remainder of the project may be financed by financial or professional investors from the market, and/or by bank loans. Phase 1 consists of the preparation and drilling of the first well and conducting the well tests required to confirm the parameters of the reservoir. Following a successful well drilling, the well pump will be installed. A pressure vessel is currently not required.
The activities of Phase 1 are the following:
- The design and engineering preparation of the first well and its accessories
- Licensing of the first well
- Preparation of the drilling location, construction of the concrete drill base
- Drilling of the first geothermal well
- Purchasing submerged well pump and the installation thereof
- Conducting the required well tests
The Geothermal Project of Kiskunhalas Ltd has been awarded financing for the implementation of its project „Utilization of geothermal heat in the district heating system of the town of Kiskunhalas”.
A Financing Agreement with respect to Project No. HU03-0003-A1-2014 titled the „Utilization of geothermal heat in the district heating system of the town of Kiskunhalas” has been signed on May 31, 2016.
Estimated budget of the project: HUF 1.351.740.764,00
Financed amount: HUF 459.862.208,00
Ratio of financing: 34,02%
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Short videos about the project.
The project is implemented by Kiskunhalas Geothermal Project Ltd (Kiskunhalasi Geotermikus Projekt Korlátolt Felelősségű Társaság), in which EU-FIRE Kft. has a 85% ownership stake and the Municipality of the Town of Kiskunhalas has a 15% ownership stake.
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