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Veolia acquires Hungarian biomass power plant in Ajka

Green Energy

Veolia Energia Magyarország has acquired a 98% stake in Bakonyi Erőmű Zrt., the operator of a power plant in Ajka, western Hungary, that has capacity to generate 132 MW of electricity and 360 MW of heat energy, the local unit of the French multinational said late Wednesday.   

Veolia agreed to buy the stake in the summer and closed the acquisition on December 28, after approval by the Hungarian Competition Authority (GVH).  Veolia did not disclose the price of the stake.

The plant is fueled mainly with biomass, but also burns some coal. Veolia said it wants to reduce the amount of coal used by the plant.   

Veolia previously bought and upgraded Central Europeʼs biggest biomass-fueled power plant, in Pécs (SW Hungary), in 2007. It acquired another biomass-fueled plant in Szakoly (NE Hungary) in 2016. 

Bakonyi Erőmű generated net revenues of HUF 13 billion in 2016, public records show. The plant has 285 people on its payroll, making it one of the biggest employers in Ajka.

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