Veolia Energy Hungary buys biomass plant

Hungarian energy firm Veolia Energia Magyarország Zrt. has acquired Bioenergia Művek Energiatermelő (DBM) Zrt., which operates the Szakoly power plant, the fifth largest installation in Hungary producing electricity purely from biomass. Veolia has acquired DBM Zrt. from its former owner NRG Power Szakoly Kft. The transaction has been approved by the competition authorities.

The group is consequently developing its renewable energy activities in Hungary, where it already operates several power plants, including those in Dorogde and Pécs, the largest 100% biomass cogeneration heating network in Europe.

Since 2009 the Szakoly power plant, with a capacity of 19.8 MW, has been producing 130 GWh of electricity per year from the combustion of wood chips and sawmill by-products, equivalent to the consumption of 50,000 households. It helps towards Hungary’s targeted 14.65% share of renewable energy sources in its total energy mix by 2020 (it was 10.5% in 2015).

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. It will contribute to the achievement of Hungary’s targeted 14.65% share of renewable energy sources in gross energy production by 2020.

György Palkó, Chief Executive Officer 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.” 

Attila Vollár, head of DBM Zrt, said:

“Our target is the long-term efficient and successful management of the power plant, which employs 55 people. We are exploring further developments, including cogeneration. The heat produced could be used for heating greenhouses in partnership with fruit and vegetable producers. In Hungary biomass represents 52% of renewable energy sources. Operating this power plant will help to increase this proportion."