The €80.8m project, which has 70MW heat generating capacity and 35MW power capacity, uses agricultural side products available in the region that include 240,000 tons of mostly straw per year being purchased, generating additional income of €13.5m from fuel sales for farmers.

The company claims around 170 new jobs will be created for collection and delivery of agricultural side products and the project reduces natural gas imports by 80 million cubic meters annually, and saves 150,000 tons of CO2 getting into the atmosphere.

The new plant provides 60% of the heat demand for the district heating system of 31 thousand flats and 450 institutions in the city, and combined with a previously installed woodchip-fired block, it allows the city to completely switch to green heating.

Dalkia Group CEO Franck Lacroix said the new plant represents the company’s dedication towards the country.

"Our company, which employs 630 people on 250 premises across the country, has invested HUF65 billion to the Hungarian energy system.

"The project is a perfect example of Dalkia’s operating philosophy in Hungary: we operate local systems, thus the results of our activities, such as generated energy or saved energy stay within the national borders," Lacroix added.