Kiskunhalas Geothermal Project: Drilling Hungary’s Clean Energy Future

An Eight-Billion-Forint Geothermal Bet: Drilling the Future Beneath Kiskunhalas

By Robert Buluma | Alphaxioms Insights |

Beneath the vast plains of Hungary’s Great Alföld, immense heat has been quietly stored for millions of years. Now, that hidden energy is poised to reshape the country’s energy future. The region around Kiskunhalas is set to become a focal point of Hungary’s geothermal ambitions, following the signing of a HUF 7.86 billion (approximately EUR 20 million) contract for geothermal drilling and well-testing works.

The agreement was signed by a subsidiary of MVM Group, Hungary’s state-owned energy company, and covers geothermal exploration activities to be carried out over the next three years across several areas of the Great Plain. This marks one of the most significant state-backed geothermal initiatives in Hungary in recent years.

Unlocking Earth’s Heat to Cut Energy Dependence

The project’s strategic objective is clear: to pave the way for geothermal power plants capable of producing electricity from underground heat**, thereby reducing Hungary’s reliance on imported energy and cutting carbon dioxide emissions associated with fossil fuel combustion.

In a twist that has raised eyebrows, the public procurement process attracted only a single bid, despite earlier plans to award framework contracts to three companies. Notably, that sole bidder was itself a state-owned enterprise,underscoring the government’s intention to strengthen public-sector involvement in geothermal exploration, extraction, and utilization.

A Vast Exploration Area Beneath Southern Hungary

The designated exploration area exceeds 175 square kilometers, extending well beyond Kiskunhalas to include the surrounding municipalities of Harkakötöny, Kiskunmajsa, Zsana, Balotaszállás, Kisszállás, and Pusztamérges in Csongrád Csanád County. This wide geographical scope highlights the scale of the initiative and its potential regional impact.

The program is being coordinated by Komm Hull Villamosenergia Kereskedő Kft., a company that holds the geothermal exploration license for the Kiskunhalas area. Under the newly signed contract, deep geothermal wells will be drilled within this licensed zone. The first exploratory well is planned to reach depths of up to 3,500 meters , delivered on a turnkey basis, a clear signal of the technical ambition behind the project.

Geothermal Energy Gains Ground in Hungary’s Strategy

Geothermal energy has been steadily climbing the ranks of Hungary’s national energy priorities. Both the National Energy Strategy and the recently published Geothermal Utilization Concept envision a significant expansion of geothermal capacity over the coming decade.

Currently, Hungary uses around 6.4 petajoules of geothermal energy annually. The government aims to increase this to 8 petajoules by 2026 and 12–13 petajoules by 2030. If these targets are met, geothermal energy could account for 12% of total heat production by 2030, rising further to 25–30% by 2035.

Such growth would have profound implications. By 2030, expanded geothermal use could replace 500–700 million cubic meters of natural gas per year, and by 2035, a total of 1–1.2 billion cubic metersa substantial step toward decarbonization and energy security.

Expertise, Ownership, and Open Questions

The drilling works will be carried out by Rotaqua Kft., a company acquired by Hungary’s national asset manager in late 2023. With decades of experience in deep drilling, Rotaqua’s roots trace back to exploration activities conducted since the 1950s, including projects linked to uranium mining. Its technical pedigree lends credibility to the ambitious scope of the Kiskunhalas program.

However, the project is not without controversy. Professional geothermal associations have previously criticized the government for insufficient consultation during the preparation of geothermal strategies, noting that several concrete commitments were removed from final policy documents. The lack of competition in the procurement process has also sparked concerns about market openness and transparency.

A Turning Point Beneath the Plains

Despite these concerns, the Kiskunhalas geothermal project represents a decisive step in Hungary’s energy transition. If successful, it could transform vast swathes of the Great Plain into a reliable source of clean, domestic energy one that works around the clock, regardless of sun or wind.

As drill bits prepare to cut through layers of sediment and stone, Hungary is quite literally drilling into its future. What lies beneath Kiskunhalas may soon help power homes, industries, and ambitions proving that some of the most powerful solutions to modern energy challenges have been waiting quietly below our feet all along.

Source:Geothermal Insights

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