Veolia acquires biomass plant in Hungary

Veolia acquires biomass plant in Hungary

Veolia (Paris:VIE), through its subsidiary Veolia Energy Hungary Co. Ltd., has acquired DBM Zrt, the firm which owns the Szakoly biomass power plant.

Veolia now owns and operates the fifth largest power plant in Hungary producing electricity purely from biomass, which generates an annual revenue of US$21.9 million.

The 19.8MW Szakoly power plant, which began its activities in 2009, produces electricity from the combustion of wood chips and sawmill by-products. It produces 130GWh of electricity per year for the national grid, the equivalent of the annual consumption of 50,000 households in Hungary.

György Palkó, CEO of Veolia Hungary said: “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.”

In 2015 in Hungary, 10.5% of gross electricity generated was from renewable energy sources.

“We are exploring further developments, including co-generation. The heat produced during the generation of electricity could be used for heating greenhouses in partnerships with fruit and vegetable producers,” stated Attila Vollár, head of DBM Zrt.

“Biomass represented 52% of the renewable energy sources, which can be further increased by the continuous operation of the Szakoly power plant.”

The plant will contribute Hungary’s targeted 14.65% share of renewable energy sources in gross energy production by 2020.

Veolia operates the largest 100% biomass co-generation heating network in Europe, which is supplied by straw and wood. In Hungary, the company produces more than 600GWh of electricy a year, which is the equivalent to the yearly consumption of 230,000 households and supplies 121,000 households with heat.