Agricultural Giant Constructs Multi-million Euro Solar Power Plant
Hungary’s UBM Group Invests in Solar Power Plant to Reduce Carbon Emissions
One of Hungary’s largest agricultural groups, UBM, has made a significant investment in renewable energy by building a solar power plant in Nyírmeggyes, located in eastern Hungary. The investment of around HUF 1.8 billion (EUR 4.5 million) has resulted in the creation of a 4-megawatt (MW) solar power plant that is projected to produce 5,880 megawatt hours (MWh) of electricity annually.
UBM Feed Zrt., a subsidiary of UBM, will benefit from this solar power plant by fulfilling 64 percent of its electricity needs from renewable energy sources. The company highlighted that the aim of the investment is to reduce its dependence on fossil fuels and transition to a more sustainable energy source.
The new solar power plant will allow UBM to generate 5,880 MWh of electricity annually from renewable sources, which is equivalent to the annual consumption of 1,300-1,500 families. Additionally, the plant is expected to reduce the company’s annual carbon dioxide emissions by up to 2,400 tons.
The total budget for the investment was HUF 1.8 billion, with 20 percent self-financing and 45 percent state support under the Factory Rescue Program. The project also received additional support through a green loan scheme with the assistance of Eximbank and MBH Bank. UBM anticipates a return on investment within 7-14 years.
Founded in 1996, UBM is a prominent agricultural group in Hungary, known for its feed production and materials retailing. The group operates 6 feed mills in Hungary, Slovakia, and Romania, and exports to 15 countries, making up more than half of its turnover.
In the fiscal year from July 1, 2023, to June 30, 2024, UBM Group reported consolidated sales of HUF 198.66 billion (EUR 498 million). UBM Holding Plc. is the sole agribusiness company listed on the Budapest Stock Exchange (BSE).
UBM’s Deputy CEO, Balázs Janositz, expressed confidence in the company’s growth strategy, aiming to increase annual feed production volume from 0.6 million tons to 1 million and annual feed materials trading volume from 1.5 million tons to 2 million. He emphasized the commitment to sourcing all necessary energy for feed production from renewable sources in the near future.
The investment in the solar power plant aligns with UBM’s sustainability goals and marks a significant step towards reducing carbon emissions in Hungary’s agricultural sector.
Via MTI, Featured image: Pexels
