Drilling for change: Szeged taps geothermal energy for a greener future

Szeged, a city in southern Hungary, has launched the EU's largest municipal geothermal heating system. The innovative project, worth nearly $80 million, replaces natural gas heating with clean energy, reducing emissions and offering a sustainable energy solution to thousands of residents and public buildings.

Drilling teams in Szeged have drilled wells more than 2,000 meters deep to access the Earth's natural hot water reserves. "Geothermal energy in Hungary provides many benefits; we have a lot of potential here," Tamas Ezsias, project manager at MedWater, tells CGTN.

The system includes 27 wells, 16 heating plants and 250 kilometers of pipes. Together, they deliver geothermal energy to more than 27,000 homes and 400 non-residential buildings across Szeged, serving about one-third of the city's population of 165,000. 

Before this transition, Szeged relied on natural gas for district heating. 

"The district heating was based on fossil fuels, mainly natural gas from Russia," says Tamas Medgyes, chief operations manager at the District Heating Company of Szeged. "This gas traveled a long way, and it's not environmentally positive to use that much gas. We wanted to cut those emissions."

EU and private investment

Switching to geothermal energy has reduced Szeged's annual carbon dioxide emissions by 30,000 tons. The project has also enhanced energy security, according to Medgyes. "If you drill down, you are sure to find 90-degree water. It's really a no-brainer to do that, but it's expensive."

To fund the project, Szeged secured support from the EU and private investors. Despite the high upfront costs, the geothermal system provides long-term benefits.

One development connected to the system is Cedrus Liget Residential Park. Geothermal engineer Gabor Veres highlighted the community's energy independence. "We operate as an energy island, ensuring long-term security for our residents and businesses," he said.

The complex also offers a unique incentive: new tenants receive free heating for up to five years. "Our heating and hot water come from the ground," said resident Peter Tamas. "We pay for electricity, but the building's free heat keeps our costs very low overall."

Szeged's geothermal initiative is a model for sustainable urban energy. By harnessing the Earth's natural heat, the city is moving toward energy independence and reducing its environmental impact. As the system scales, Szeged is leading the way in Europe's transition to greener heating solutions.