The government also supports efforts to replace imported coking coal with low-carbon fuels in the future. Hungary’s NCDS expects technologies, such as carbon capture, utilisation and storage (CCUS) and hydrogen, to become available after 2030 but before 2040.
Furthermore, decarbonization can enhance Hungary’s energy security by growing the share of domestically produced primary energy from 27 to 76 percent by 2050. The following are some of the highlights of Hungary’s optimal pathway forward, by sector.
Up to 2030, Hungary plans to produce 20 000 tonnes (t) per year of hydrogen via steam methane reforming of fossil fuels and 16 000 t per year of hydrogen produced from solar PV, with some pilot projects under way, such as the Aquamarine project.
“Hungary has a huge opportunity to develop hydrogen for industrial sectors. Continued investment in developing its solar PV, geothermal and wind resources will allow Hungary to reduce its reliance on natural gas and coal in both heating and power generation.
Hungary also holds strategic gas reserves at an underground storage facility owned by the Hungarian oil and gas stockholding agency. In September 2021, the level of strategic stocks held was 1.45 billion cubic metres (bcm), around 13% of annual consumption in 2020.
Since the last IEA review, Hungary increased its climate ambitions by legislating a carbon neutrality goal for 2050, adopting a long-term strategy, advancing the phase-out of coal by 2025, promoting a remarkable growth in the deployment of solar PV and upgrading its existing nuclear reactors.