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PannErgy establishs 4th geothermal company

Hungarian alternative-energy company PannErgy and the local council of Kiskunhalas (S Hungary) have established a geothermal-energy company in a joint venture, PannErgy reported on the website of the Budapest Stock Exchange on Thursday evening.

PannErgy owns 90% of the new company, called Kiskunhalasi PannTerm, while the local council of Kiskunhalas owns the remaining 10%.

PannTerm will begin drilling geothermal wells near Kiskunhalas after it obtains the necessary land rights and permits.

PannErgy Board of Directors Chairman Balázs Bokorovics noted that the company has now established JVs with four local councils, including those in Szentlőrinc, Tamási and Csurgó (all S Hungary) in addition to Kiskunhalas.

PannErgy intends to apply for European Union funding to partly finance the investments made as part of the JVs.

PannErgy sustained after-tax losses of HUF 481 million (€1.7 million) in the first quarter of 2009, down 19.7% from after-tax losses of HUF 599 million in Q1 of 2008, the company announced in its consolidated IFRS report on May 15. (MTI-ECONEWS)