Construction Begins on Geothermal District Heating Plant in Szentlorinc, Hungary

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Reykjavik, Iceland - July 8th, 2010 - Mannvit Engineering ("Mannvit") announces groundbreaking for the first geothermal district heating plant in Hungary.

Earlier this week, an official groundbreaking ceremony marked the beginning of the construction process of the geothermal district heating plant in the town of Szentlorinc, Hungary. The cornerstone was laid by Mr. Össur Skarphéðinsson, Foreign and External Trade Minister of Iceland, Pál Kovács, Deputy Secretary of Energy Policy from the Ministry of Development and, Dr. Márk Gyorvári, the Mayor of Szentlorinc. This pioneering project is the largest geothermal development enterprise to date in Hungary and will replace the town's existing natural-gas powered district heating system with environmentally-friendly and sustainable geothermal energy.

PannErgy Plc and the Icelandic engineering firm Mannvit have been working in collaboration for over three years, a partnership which will begin to utilize Hungary’s significant geothermal potential. Mannvit, a global leader in exploring and utilizing geothermal resources, is offering its decades-long scientific and technological expertise in geothermal energy for the Szentlorinc project.

This groundbreaking follows an announcement in September 2009, that drilling of the first production well in Szentlorinc was successful. It is expected that this well will be supplying hot water to the town's district heating system by October, 2010. In, June 2010, a 15-year agreement was signed, with a five year extension option, between Szentlorinc Geotermia Zrt., a 90%-owned subsidiary of PannErgy Polifin Zrt. and, the non-profit Szentlorinci Közüzemi Közhasznú Kft to supply heat energy from the production well to the town's district heating system.

You can find more information on geothermal energy and additional projects examples on the following websites: http://www.mannvit.com and http://www.pannergy.com

About Mannvit Engineering
Mannvit Engineering of Iceland provides a broad range of engineering and technical research services. Since the early seventies, Mannvit has been active in the area of renewable energy and has been involved in the development of most power plants in Iceland, both hydroelectric and geothermal. Services for these projects range from research and preparatory work to complete design and construction management. For more information, please visit http://www.mannvit.com.

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Runólfur Maack
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