Veolia Energy Hungary has acquired the Szakoly biomass power plant in Hungary, which produces electricity from woodchips and sawmill by-products. The plant has a capacity of 19.8 MW and generates 130 GWh of electricity per year, equivalent to the annual consumption of 50,000 households. Veolia aims to efficiently manage the power plant and explore further developments, including cogeneration. The acquisition strengthens Veolia's position in eastern Hungary, where it already operates power plants in Debrecen and Nyíregyháza. Biomass accounted for 52% of Hungary's renewable energy sources in 2015, and the Szakoly power plant will contribute to the country's target of 14.65% renewable energy by 2020.
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.
“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 György Palkó, Chief Executive Officer of Veolia Hungary.
“Our target is the long-term efficient and successful management of the power plant, which employs 55 people,” said Attila Vollár, head of DBM Zrt. “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% of gross electricity produced was from renewable energy sources. “Biomass represented 52% of the renewable energy sources, which can be further increased by the continuous operation of the Szakoly power plant,” added Attila Vollár. It will contribute to the achievement of Hungary’s targeted 14.65% share of renewable energy sources in gross energy production by 2020.
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% 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.