15 Hungary
15.1 Summary of Coal Industry
15.1.1

ROLE OF COAL IN HUNGARY

Hungary uses three categories to classify its coal – hard coal (bituminous), brown coal, and lignite.
Brown coal and lignite account for approximately 80 percent of the country’s total coal reserves,
making these the most significant indigenous energy sources (Euracoal, 2014)--used mainly in its
thermal electric power plants. These plants cannot use higher quality coal and therefore, rely on thesupplies of lower-quality domestic coal.
Hungarians are making efforts to convert from coal to cleaner burning fuels such as natural gas oroil. Overall production of lignite (including brown coal) declined nearly 29 percent from 2002 to2012 (EIA, 2014). Brown coal production declined more sharply and bituminous production has
ceased due to declining reserves (Steblez, 2005). Table 15-1 summarizes Hungary’s coal reserves
and recent production.

Table 15-1. Hungary’s Coal Reserves and Production

Indicator
Estimated Proved Coal Reserves(2011)
Annual Coal Production (2012)

Source: EIA (2014)

Anthracite &Bituminous(milliontonnes)

Subbituminous &Lignite(million tonnes)Total(milliontonnes)

Global Rank(# and %)

09.29

9.29

27 (0.12%)

13.0

1,647.0

1,660.023 (0.19%)

Hungary’s principal bituminous coal basin is the Mecsek Basin in the Mecsek Mountains of Baranya
Province (Figure 15-1). Other coalfields include the sub-bituminous/lignite coalfields of Ajka,Borsad, Matra, Nógrad, Oroszlány, Tatabánya , and Varpolata.

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Figure 15-1. Hungary’s Coal Basin Fields

15.1.2

Source: Euracoal (2014)

STAKEHOLDERS

As indicated in Table 15-2, Magyar Olaj es Gaz (MOL), the state oil and gas monopoly, is a
prospective stakeholder in the development of Hungary’s coal mine methane (CMM) industry.

Table 15-2. Key Stakeholders in Hungary’s CMM Industry

Stakeholder Category
Natural Gas Transmission &Distribution Companies

StakeholderEnergy Companies/PowerGeneratorsEngineering, Consultancy,and Related Services



Developers

Government Groups







Role

Magyar Olaj es Gaz (MOL)

Pipeline sales

See
http://www.epa.gov/coalbed/networkcontacts.html

Technical assistance

MVM Group (Magyar Villamos Művek Zrt.)
MÁTRA (Mátrai Erömü Zrt.)
See
http://www.epa.gov/coalbed/networkcontacts.html
Energy Centre Hungary
Ministry for National Economy
Ministry for Environment and Water
Hungarian Energy and Public Utility Regulatory
Authority
Hungarian Office for Mining and Geology

CMM project identificationand investment
Project opportunity
identification and planning
Development of energy
policy, project
implementation, regulatory

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15.1.3STATUS OF COAL AND THE COAL MINING INDUSTRY

The coal mining industry in Hungary is privatized. No information was found quantifying theproportion of underground mines considered gassy.

15.2 Overview of CMM Emissions, Projects, and Potential
There are significant recoverable gas reserves from coal beds in Hungary (see Table 15-3).

Table 15-3. Hungary’s Largest Recoverable CMM/CBM Resources
Amount(million cubicmeters)

LocationAlgyő

12,700Hajdúszoboszló

1,500

Pusztaföldvár

1,700

Üllés

2,800

Szank

700

Szeghalom

800

Nagykörű

2,600

Lovászi200Mezősas3,300

Kisújszállás

800

Total

15.2.1

27,100Source: Foldessy (2006)

CMM EMISSIONS FROM OPERATING MINES

Methane emissions in Hungary totaled 21.7 million cubic meters (m3) in 2000, but are projected todecrease significantly to 1.4 million m3 by 2015, and then remain stable through 2030 (see Table15-4).

Table 15-4. Hungary’s CMM Emissions (million cubic meters)

15.2.2Emissions

2000

20052010

Total CH4 Emitted

21.7

1.4

1.4

Source: USEPA (2012)2015(projected)
1.4

CMM EMISSIONS FROM ABANDONED COAL MINES

No information on methane emissions from abandoned mines in Hungary was found.

15.2.3

CBM FROM VIRGIN COAL SEAMS

Overall coalbed methane (CBM) resources in the country are estimated at 152-159 billion m3, ofwhich 142 billion m3 are in the Mecsek Coal Basin. The Mecsek region is thus the target area for
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CBM development. The potential of CBM was examined in Hungary in 2006 (Molnar, nd). Variousfactors such as coal rank, gas content, natural fracturing, history of gas emissions, proximity toguaranteed markets, and the relative dryness of coal and deep mines identify the Mecsek basin as asite for potential CBM development (Schwochow, 1997).The gas in the seams is approximately 95
percent pure, 70-90 percent of which is solid solution and sorbed, and contains 0.8 percent carbon
dioxide (Foldessy, 2006).

Four drillhole tests were done between 1994 and 1995, all of which experienced fracturing by fluidcarbon dioxide and failed. New projects, proposed by the University of Miskolc, would use steam
gas extraction through medium radius drilling to access methane stores.

15.3 Opportunities and Challenges to Greater CMM Recoveryand Use
As expressed in Table 15-5, Hungary ratified both the UNFCCC and the Kyoto Protocol, under which
it has committed to a reduction of 6 percent of emissions from the base period 1985-1987(UNFCCC, 2005). Hungary is an Annex 1 country and is eligible to host Joint Implementation (JI)
projects. While there are several landfill-related and forest biomass JI projects in Hungary, there arenone related to coalbed/mine methane (UNEP, 2014).

Table 15-5. Hungary’s Climate Change Mitigation Commitment

Agreement
UNFCCC

Kyoto Protocol

Source: UNFCCC (2014)

Signature

Ratification

June 13, 1992

February 24, 1994--­August 21, 2000

Hungary’s Climate Change Act 2007—based on UNFCCC implementation and its Kyoto Protocol—
created a framework for building the country’s ability to adapt to climate change. The Act
prescribed the preparation of a national climate change strategy for Hungary and in 2008, aNational Climate Change Strategy (NCCS) was accepted by the Parliament (EU, nd). The NCCS
contained chapters on both climate change mitigation and adaptation, and identified key objectives
and actions to be implemented for 2008-2025. The Act also required the Hungarian Government
adopt National Climate Change Programmes (NCCPs) every two years. The first NCCP was approvedfor 2009 and reviewed in 2011.
The first revision of the NCCS (the “Strategy”) mandated by the Climate Change Act 2007 wasanticipated to take place before the end of 2013. The revised version would extend the strategy’s
timeframe to 2030, with a 2050 outlook (EU, nd). As part of the revised NCCS, Hungary also intends
to prepare a national adaptation strategic framework. At the time of publication, current status of
the revised strategy was unknown.

15.3.1

MARKET AND INFRASTRUCTURE FACTORSIn the 1990s, the Hungarian government privatized the coal industry, dividing the existing coalmines into supposedly profitable and unprofitable groups. The profitable ones were contracted topower plants and have been supported by government subsidies to varying degrees in the form of
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price guarantees, subsidies for fuel switching, and government responsibility for most existing
liabilities. The introduction of EU regulations and requirements has not changed the landscape forthese factors significantly, so continued support for standard fuel sources and systems will likely
continue to impede investment in alternatives like CMM (Perger, 2009).

15.3.2REGULATORY INFORMATIONNo regulatory information regarding development or sales of CMM in Hungary was found.

15.4 Profiles of Individual Mines

Márkushegyi Bányaüzem, Oroszlány Coal Basin, Oroszlány
General Information
Depth of shafts

Mining capacity

General Geologic Information
Coal seam gas content range
FaultsTotal methane resource

Geologic and Mining Conditions

250 m

4,167 tonnes/day
2-3 m3/tonne
Yes

0.3-0.5 billion m3 (coal seams)

Rank of coalSub-bituminous

Sulfur content

3.3 percent

Depth of mining
Ash content
Gas content

Mining method

Roof control method
Source: Molnar (nd)250 m

Coal in place, run of mine - 30.8 percent
2-3 m3/tonne coal
LongwallCaving

15.5 References
EIA (2014): International Energy Statistics, U.S. Energy Information Administration, Washington, DC,accessed July 2014. http://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm

Euracoal (2014): Country Profile – Hungary, European Association for Coal and Lignite, website accessed
September 2014. http://www.euracoal.be/pages/layout1sp.php?idpage=74

EU (nd): European Climate Adaptation Platform – Hungary, European Union/European Environment Agency,
web page not dated. http://climate-adapt.eea.europa.eu/countries/hungary
Foldessy (2006): “Coalbed methane and CO2 sequestration potential of the Mecsek Mts. Coalfields, SHungary,” Janos Foldessy, University of Miskolc, Hungary, Institute of Mineralogy and Geography, 2006.
http://fold1.ftt.uni-miskolc.hu/pdf/060330.pdf

Molnar (nd): Mr. Laszlo Molnar of Energy Centre Hungary, not dated.

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Perger (2009): The Role of Coal in the Hungarian Electricity Sector with Special Attention to the Use ofLignite, Perger, András, Energia Klub, November 2009.
http://www.energiaklub.hu/dl/kiadvanyok/lignite_hungary.pdf

Schwochow (1997): The International Coal Seam Gas Report, Cairn Point Publishing, Steve Schwochow, chiefeditor, 1997.
Steblez (2005): Steblez, Walter G., “The Mineral Industries of Central Europe (Czech Republic, Hungary,Poland, and Slovakia),” U.S. Geological Survey Minerals Yearbook – 2005.

UNEP (2014): CDM/JI Pipeline Analysis and Database, United Nations Environment Programme Danish
Technical University Partnership, accessed July 2014. http://cdmpipeline.org/index.htm

UNFCCC (2005): Annex I Party GHG Inventory Submissions 2005, United Nations Framework Convention on
Climate Change, 2005.
http://unfccc.int/national_reports/annex_i_ghg_inventories/national_inventories_submissions/items/27
61.php
UNFCCC (2014): Ratification Status – Hungary, United Nations Framework Convention on Climate Change,
website accessed September 2014. http://maindb.unfccc.int/public/country.pl?country=HU
USEPA (2012): Global Anthropogenic Non-CO2 Greenhouse Gas Emissions: 1990 - 2030, U.S. Environmental
Protection Agency, Office of Atmospheric Programs, Climate Change Division, December 2012.
http://www.epa.gov/climatechange/EPAactivities/economics/nonco2projections.html

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