GeoEx Business Activity, February 2010 – January 2014

Geotermia Express Engineering Consulting Ltd. has overviewed the firm’s activity related to the previous four years. During this period the number of activities completed by the Company has reached such a level that allows drawing up a comprehensive analysis.

The managing team has investigated 21 activities which can be considered as independent projects. The Company has also implemented a number of other projects for both domestic and foreign companies, or for other community institutions, however, those activities have not resulted in currency turnover. This is the reason why the report covers the 21 company projects. A brief summary of the results concluded from the analysis is provided below.

The classification of the projects was carried out according to three main aspects:

  1. Which segment of geothermal engineering it covered

  2. Who provided the financial resources for the projects

  3. What kind of task was to be performed



1. In terms of the geothermal energy segment of the activity


The three major segments of geothermal energy production are covered by

  • heat pump

  • direct heat supply and

  • power plant projects.

Complex (e.g. combined heat and electricity production) as well as hybrid projects (including hydrocarbon or any renewable resources) may be feasible, which will also appear in the near future. There are other types of projects that are not connected to a certain segment, but to framing a general geothermal strategy, concept or activity plan. They will be referred to as „other” in the analysis as well as in the pie charts.

The following pie chart shows GeoEx activity in terms of the major segments:




In Hungary a vast majority of geothermal energy production is provided through direct heat supply. This appears on the pie chart as the largest slice of all the projects.

Considering the fact that the key actors of GeoEx Team has been dealing with deep (> 2500 m) geological exploration as well as with the feasibility of geothermal power plants, this segment is significant in the four-year activity of the firm. Despite the fact that there has not yet been established an operating geothermal power plant in Hungary, some investment interest occurs, and the potential investors provide financing for the preparation work in power plant projects. Supposing that the tender applications for geothermal concession are going to continue and the takeover prices of electricity are issued again, the investors will enter the market, and the projects already prepared or the ones under preparation will be launched.



2. In terms of financing


It is worth considering what kind of clients finance the company projects.

Three major client categories were identified:

  • domestic enterprise,

  • state- or municipality-owned domestic institution, and

  • foreign enterprise.

This kind of project classification is shown in the pie chart below:



It can be clearly seen that an almost equal number of projects have been financed in the three categories. A shift in proportion appeared when the projects were analysed weighted with the paid sums of money.




3. In terms of tasks


GeoEx is a technical – technological consulting firm, which considers ground heat investments as innovation processes. There are two main reasons behind this concept.

On one hand, ground heat as a product is at the beginning of its life cycle. This is the case in spite of the fact that ground heat production has a century-long tradition. The real domestic potential of geothermal energy production is only explored up to less than 10 %. A large number of development and growth opportunities (as well as professional commitment) are still before us to be implemented.

The other major reason is that the geothermal energy projects are never identical with each other. Similarly to the fact, that the geological structures are not identical, neither are the consumer systems the same; consequently, each project is to be planned thoroughly and individually, since each project is a certain type of innovation process.

Concerning all this, in the third phase of the analysis, the different phases of the innovation process of energy production, in which the tasks had to be implemented, were overviewed.

In the pie chart below, the tasks connected to the strategy, concept or action plan preparation, namely the tasks not related to a certain geothermal project, were separated from the projects. As for the projects, office preparation, and field implementation and operation were separated.

In this way, the distribution of the number of company projects is shown according to the tasks to be performed:


Regarding that ground heat utilisation is still a developing and growing energy production sector, there has been a high demand for a number of strategic and concept plans, as well as for the preparation of new projects. Implementation, operation and extension work has been given less interest in the recent years of tight budgets. At the same time, as the diagram shows, the investors have been developing their geothermal strategies and concepts, and preparing their projects for the EU planning period of 2014-2020, when the projects can officially be launched under more favourable legal, authorisation and financial conditions.

GeoEx, based on its own human resources and co-operating with its contracted partners (7-8 FTE), has been working with a separate working team for each project (GeoEx Team). This analysis has revealed one of the strengths of GeoEx; a geothermal intellectual workshop has been established, which is able to create value whichever segment of ground heat production is concerned, as well as in any phase of the innovation process.

Written by Attila Kujbus, Managing Director, January 2014.

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