Hungary protected forests harvested for inefficient biomass plants

Reports indicate that a significant portion of timber harvested from protected forests in Hungary is being diverted to inefficient biomass power plants or exported, rather than being used to support households in need. While the Ministry of Environment justifies the end of the logging moratorium citing social reasons and long-term contracts, the specific details of these agreements remain undisclosed.

Analysis shows that the French company Veolia dominates the market, purchasing approximately 70 percent of the wood sold from state forests to power plants. Investigations have linked Veolia’s Hungarian interests to business circles associated with Árpád Habony, a former Fidesz advisor. One such entity, the Oroszlány Power Plant, has contributed to a 90 percent increase in domestic biomass wood consumption according to WWF estimates.

Furthermore, much of the harvested wood is used for electricity generation rather than district heating, resulting in significantly lower efficiency levels. This practice mirrors a broader European trend where EU subsidies intended for renewable energy and waste utilization have incentivized the targeted production of wood pellets from healthy, old-growth trees.