Call for proposals – Geothermal risk mitigation scheme in Hungary
Hungary has issued a call for proposals for projects eligible for a newly launched geothermal risk mitigation scheme covering drilling and related activities.
The Government of Hungary has issued a call for proposals for projects to be covered by the “Reducing Geothermal Drilling Risks” (KEHOP-
Plusz-4.2.4-25) programme. The first phase of the Call will be open from 2 March 2026 to 30 April 2026, and a second phase will take place from 14 September 2026 to 30 October 2026.
Click here to view the documents and forms relevant to this call.
Activities eligible for this call include the drilling, preparation and investigation of the first well of a geothermal project for energy purposes, as well as the related project preparation tasks. An application for support may only be submitted by a business entity that has a geothermal concession right, or a geothermal exploration permit, and a final construction permit for the location of the intended drilling.
The support for a project can be a minimum of HUF 400,000,000 (appr. EUR 1 million) – a maximum of HUF 1,000,000,000 (appr. EUR 2,5 million). In the case of a well that is successfully certified at the end of the project, the support amount is 10%. In the case of a well that is unsuccessful, the support amount is 50% for SMEs, and a maximum of 45% for large companies and businesses in proportion to the total eligible cost. The applicant must have at least the amount of self-funding equivalent to the total cost of the project minus the requested grant amount.
The total available budget is 10 billion HUF (appr. EUR 25 million).
The project implementation area is Hungary, except the capital, Budapest. The physical completion of the project is limited to a maximum of 24 months from the entry into force of the grant agreement, but no later than 31 December 2028.
In 2024, the Government of Hungary published a National Geothermal Strategy that set a goal of increasing domestic geothermal energy use by 20% in 2026, and to double the output by 2030. With major geothermal projects in places like Szeged and Kiskunhalas, as well as capacity building efforts, Hungary is on the right track to achieving significant geothermal growth in the coming years. Representing a strong vote from the sector is the selection of the city of Budapest to host the European Geothermal Congress in 2028.
Source: Email correspondence