HUNGARY: Ukrainian owned company Emfesz will build Central Europe's largest power station in eastern Hungary

Record ID: 625285

  • Title: HUNGARY: Ukrainian owned company Emfesz will build Central Europe's largest power station in eastern Hungary
  • Date: 29th May 2008
  • Summary: (CEEF) NYIRTASS, HUNGARY (RECENT) (REUTERS) MAN CYCLING DOWN STREET HORSE-DRAWN HAY-CART WALKING DOWN STREET
  • Embargoed: 13th June 2008 13:00
  • Keywords:
  • Location: Hungary
  • Country: Hungary
  • Topics: Energy
  • Reuters ID: LVADBEUX2FRANJYB65SD7HLM9RBN
  • Story Text: The picturesque village of Nyirtass in eastern Hungary is to become home to Central Europe's largest power station.
    Hungarian gas wholesaler, Emfesz recently announced Nyirtass as the location for its planned gas-fuelled power plant, that will have a total capacity of 2,400 megawatts at a total cost of 1.5 billion euros.
    Emfesz said it chose the east lying village because of its proximity to a gas pipeline in Ukraine which will ship natural gas to Hungary. Two high-voltage power lines already exist in Nyirtass and Hungary's second biggest Tisza river, which can provide water for cooling, is also close by.
    Laszlo Papp, Nyirtass' mayor, also believes his village is a suitable spot for the development.

    "This huge power transmission line used to link the Soviet Union and Hungary and an enormous amount of power used to be transmitted through here. Today only about 10% of its capacity is used," he said, pointing to power lines on the outskirts of the village.

    "It's very important for a power station to have fuel material close by. And these power lines are live. Even though they are not being used much, they provide a very good opportunity to transmit the electricity that the power station will produce here," he added.
    Growing economies in central and southeast Europe have increased demand for electricity at a time, when power generators in the region are being taken out of service and some nuclear reactors have designated for closure to meet EU demands.
    Emfesz, owned by Ukrainian businessman Dmitry Firtash, is Hungary's biggest independent gas wholesaler and accounts for about 20 percent of Hungary's natural gas imports. The Budapest-based firm buys gas from Russian-Ukrainian gas agent RosUkrEnergo, partly-owned by Firtash and Russian energy giant Gazprom.
    Tamas Gazda is head of Emfesz mergers and acquisitions, his company estimates that Hungary's electricity needs will rise by at least 2.5-3.0 percent every year.

    "Up until recently Hungary has been a net importer, which meant that we imported electricity from Slovakia and Ukraine. But power stations, nuclear power stations are being closed down in Slovakia so the net import possibility is decreasing, or will stop completely. Therefore extra capacities will be needed soon. By 2015-2025 Hungary will need an additional 6600 Megawatt capacity, and this is the basis for the building of this power station," Gazda said.
    Nyirtass' residents have high hopes about what the power station may bring to their lives. Their mayor also hopes other companies will be drawn to the village to use the waste-heat the power station will produce.

    "When the plant is producing electricity it will also produce a significant amount of waste-heat that will appear in steam form. We do not wish to channel this steam back into nature, but instead make it available for use for other companies," Papp said.
    The villagers are hopeful that the power station will bring jobs, and keep their young people at home.

    "Now Nyirtass will be famous because such a huge power station will really liven up the village and improve the standard of living,"
    resident Gyorgy Raganyi said as he repaired his tractor.

    "I am very happy about it because we will have more job opportunities. Here in the village there is no work at all apart from seasonal work but last year we didn't even have that because of the frost. We hope we will have work now through this," another resident said.
    If completed, the new power plant will be Hungary's biggest, surpassing the country's only nuclear power generator, Paksi Atomeromu.
    Construction of the first block will be completed by 2011. Construction of the second will finish by 2015.
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