The aim of the South Hungarian Enhanced Geothermal System (EGS) Demonstration Project is to establish a demonstration EGS power plant that will be unique not only in Hungary but on the European continent as well. Within the project, an EGS reservoir will be developed in the South part of Hungary (Battonya), and a geo-thermal power plant will be established, delivering a gross electric power of 11.8 MW, generating 74,000 MWh electricity per year.EGS utilizes heat in deep underground rocks by injecting water down into the rocks and pumping it back up after it is heated; this geothermal technology can be utilized in areas that are not optimal in terms of thermal water resources. The heated water is used to produce electricity and, if feasible, district heating, to make as efficient use of the hot liquid as possible before re-injecting it, thus creating a closed cycle of extracting thermal energy from the rocks.A geothermal power plant, near the village of Ferencszállás in south-eastern Hungary, will use geothermal energy from hot dry rock in a compressional stress field. An Enhanced Geothermal System will involve the drilling of four 4km deep production wells and two re-injection wells, and the hydraulic fracturing of the reservoir under the compressional stress fields. Net capacity of the plant is 8.9 MWe; the electricity is expected to be sold to the electrical grid.