The MVM Mátra Energy Co.
From 1 July 2021 Mátrai Erőmű Zrt. (Mátra Power Plant Co.) continues to operate as MVM Mátra Energia Zrt. (MVM Mátra Energy Co.). With its more modern and dynamic name, the company intends to emphasize its belonging to the MVM Group as well as a complex transformation programme.
Having been in operation since 1969, Mátra Power Plant is the only significant electricity generating power plant based on domestic primary energy source (lignite) in Hungary. With its total installed capacity of 950 MW it is the second largest electricity producer in our country and plays an important role in some system regulating processes. In the year 2023 the power plant produced 2,828 TWh electricity, which provides approximately 8 % of the total national power generation. Fuel for the lignite-fired units of the power plant is delivered from its own open-pit mines from Visonta and Bükkábrány, where a total of 4,1 Mt of lignite was excavated in 2023.
The power plant has been producing renewable energy since 2002, which proves its significant contribution to achieving the sustainability indicators undertaken within the European Union. In order to reduce its CO2 – emission, the company also burns biomass mixed to the fuel in the proportion of 11-12 %. By possessing the professional experience, the know-how as well as the special technology, its subsidiaries are important pillars of the company’s vision. In addition to serving the power plant and the mines, these companies (Geosol Kft., MVM Mátra Gép., MVM Mélyépítő Kft.) have marketable production and service capacities, which provide a solid basis for the implementation of the industrial development programme in the region.
Approximately with its 2,000 employees, MVM Mátra Energia Zrt. is one of the largest employers of the region. Together with its subsidiaries and partners of its industrial park, it supports the livelihood of about 3,000 families. That is why it is essential to maintain jobs during the transition to an environmentally friendly operation, and to make them sustainable in a longer term. Realising the green vision of the facility, phasing-out coal technology is also in line with the objectives of the EU Energy and Climate Policy, which provides opportunities for the company to apply for significant EU funding during the transition. Retaining employees longer in work remains a key priority even after the phase-out of coal-based power generation. Until the installation of the new 650 MW Combined Cycle Gas Turbine (CCGT) plant, lignite-based energy production will continue and after that the current mining activity will be partially converted to recultivation activities, so some of the miners can continue to be employed in the mining facilities. In addition, workers of the Mátra will have an important role in the preparation tasks of the implementation of the planned state-of-the-art power plant units.
In 2007 an industrial park connected to Mátra Power Plant was established on a plot consisting of 259 ha core area and 24.4 ha development area, which administratively belongs partly to Visonta and partly to Halmajugra municipalities. It is bordered on the north-east by the reservoir of Markaz, on the east by agricultural area belonging to the municipality of Markaz, on the south by landscaped mining area returned to agricultural cultivation, and on the west by forest area and vineyards planted on landscaped mine-dumps belonging to the municipality of Visonta.
The firms and production companies settled right next to the power plant based their business intentions on the available commodity supplies, including cheap electricity and the existing infrastructure, utilizing by-products resulting from the operation of the power plant, and biomass co-firing projects. In order to utilize by-products, companies producing plasterboard and alpha-semi-hydrate settled in the nearby area of the power plant, furthermore, a biodiesel- , bioethanol producing plant is also operating in the industrial park, which requires steam and power from the Mátra Power Plant.
30-year-long modernization programme
Mátra Power Plant and its subsidiaries were acquired by the MVM Group on 26 March 2020. The objective of the owner is to transform the now out-of-date and inefficiently operating power-generating facility into a modern, carbon-saving system, which has economical production. The coal-fired power plant is responsible for less than 8 % of the total domestic carbon-dioxide emission, so it is essential to develop its technology in order to support achieving Hungary’s carbon-neutral goals of 2050 in line with the National Energy and Climate Policy. The professional background of the parent company guarantees the smooth operation of the supply system during the transition process. Realising the green vision of the company, phasing-out coal technology is in line with the objectives of the EU Energy and Climate Policy as well, which provides opportunities for the company to apply for significant EU funding for the transition. The lignite-fired units are planned to be phased-out by the end of 2028, and new production units will have been involved in power generation by that time.
5 pillars of the modernization programme:
- New, combined cycle gas turbined power plant (CCGT) with the maximum capacity of 650 MWe
Installation of a natural gas-fired, high-efficiency, low CO2 intensity and flexibly controllable gas turbine power generation unit. The annual electricity production will be approximately 2.8384 TWh. The short-term substitution of lignite-fired generation units by natural gas-fired generation could save nearly 8% of Hungary’s total annual CO2 emissions. The gas turbine with a mixing rate of ~30% can also be used in the future to fuel the hydrogen produced on site, leading to further significant CO2 reductions. The unit has a fast off-loading and on-loading capability, which makes it the best complement to photovoltaic capacity from a technical and economic point of view, given current and medium-term technological developments. In this way, the creation of the CCGT unit could also allow the installation of additional PV parks. The preparation of the project has been completed and the priority environmental and construction permits have been obtained by MVM Mátra Energia.
- Biomass-fired unit with the capacity of 38-45 MW
The power plant currently produces ~480 GWh/year of electricity using ~400,000 t/year of biomass. With the planned closure of the lignite-fired units after 2025, this amount of biomass for energy purposes would cease to be used, as they are currently fired by co-firing technology. For this reason, it is justified to further utilise and expand the supply system and biomass processing infrastructure established at the site. The project has been prepared and the priority permits have been obtained by MVM Mátra Energia.
- Application of photovolatic solar parks on the recultivated mine sites with the capacity of 200 MW
In the recultivated areas of the Visonta and Bükkábrány mines, new solar parks with a capacity of up to 2×100 MW will be installed in the prepared areas. The PV installations will start, in accordance with the mine reclamation schedule. The preparation of the construction sites has been completed and the permitting procedures are ongoing. The construction of three new solar power plants will start soon to continue the green energy production on the recultivated mine sites in cooperation with MVM Green Generation Zrt. and MVM Mátra Energia Zrt. The total connected capacity of the three new solar power plants will be 75 MW.
- CCS/H2 pilot project – CO2 capture and storage- recovery
The plans include the implementation of a pilot project using CCS/H2 (Carbon Capture Storage – Storage and Utilisation) technology, which will mainly involve the capture of CO2 from the flue gas of gas turbine units, its storage and utilisation at product level, and will also be linked to the use of green hydrogen produced by solar power plants. The pilot project could pave the way for the construction of a future commercial-scale CCS unit capable of using other carbon dioxide sources and will be a pioneer in CO2 recovery.
- Industrial Park developments
The 5th pillar of the modernisation programme is based on the special production and service capacities of the Mátra Power Plant and its subsidiaries. The technological transformation of the power plant will be carried out within the framework of a complex regional development programme, which will ensure the continued employment of the available skilled workforce. The aim of the regional development is to provide a liveable natural and predictable economic environment for residents and employers.
At present, 13 industrial park members and 21 other partners belong to MVM Mátra Energia Zrt. Industrial Park. The total turnover of all participants in 2022 was 377 billion forints (HUF).