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Hungary plans to ramp up lignite production in face of energy crisis

In response to the looming energy crisis, Hungary will relaunch the Mátra Power Plant and increase lignite production to strengthen energy security.

In July, the Hungarian government announced a 7-point action plan to cope with record high energy prices which already included these goals.

“Due to the extreme price increase of energy carriers on the global market, the question is not how much oil or gas we can buy, but if it’s even possible to buy any. Therefore, the government’s priority is to ensure energy supply security,” said Hungary’s Minister of Technology and Industry, László Palkovics adding that the energy crisis underscored the importance of the domestic mining sector.

Last year, the Mátra power plant produced about one-tenth of Hungary’s electricity production. The government wants to increase this with further investments in the following years and ramp up lignite mining until 2025, the planned closure of the power plant.

“Lignite mining in Hungary can gradually reach the level of nearly six million tons per year, and brown coal mining can be increased from 50,000 to 280,000 tons per year,” said the minister, adding that they are currently working on a mining action plan.

According to the latest government energy strategy, most of the existing lignite-fuelled units of the Mátra power plant will be shut down in 2025 and a new 500 megawatts (MW) gas-fired unit will be added as well as up to 400 MW in solar power.

According to the Minister, the revitalisation of lignite production won’t impact the country’s climate goals and commitments.

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