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PannErgy says it will cancel geothermal project in Hungary

Geothermal energy company PannErgy is discontinuing its geothermal project at Gödöllő, near the capital, after reassessing implementation risks, the company said in a statement published on the Budapest Stock Exchange (BSE) on Friday, Hungarian news agency MTI reported.

The company noted risks arising from emerging commercial and business uncertainties, the possible lack of appropriate sized heat off-taking partners, the low off-take and commercial heat price – as well as extensive availability (to competitors) of non-refundable European Union grants.

The cancellation generates a HUF 900 million one-off consolidated loss in Q4, which will be compensated by the transaction profit of HUF 1.1bn from the real estate and reinjection well sales by DoverDrill, the company said.

PannErgy is looking at other investment opportunities with a new technical concept that does not require the availability of geothermal water.