Hungarian Economy

Hungary’s natural environment provides favorable conditions for agriculture with fertile plains, an advantageous climate and abundant water. The refinery is centrally located in the country’s corn growing community. The plant adds significant value to grains produced in the region and puts Hungary on the world stage as a clean energy provider and high value agri-food exporter.

Pannonia Bio impacts positively on the European Union, manifested in climate action, transport decarbonisation, sustainable farming practice, energy independence and reduced dependence on imported animal feed. The company’s production of clean green ethanol has been welcomed by the Hungarian government as a valuable contributor towards a clean and independent energy future for the country.

Pannonia Bio impacts the Hungarian economy, both directly and indirectly. A 2015 study (link to Hetfa) found these to be positive both at regional and sectoral level. Direct impacts are through employment, exports, taxation, value added and income generation across the supply chain. Indirect impacts come from the increased income for suppliers, the multiplier effect of expenditures and the creation of additional demand in the economy.

Pannonia Bio’s cumulative impact on Hungarian GDP is projected to be over €1bn over 10 years. Estimates of employment creation are in excess of 2,000 jobs and tax revenue increases over €200m. The annual indirect impact of Pannonia Bio varies between €20m to €100m, depending on demand. The Hungarian agricultural sector is impacted particularly by driving innovation, efficiency, yield improvements and more demand for agricultural equipment and technology.

Pannonia Bio’s products are exported to over 27 different countries in Europe and beyond, making the business a local enterprise with a global reach and ambition. The impact on Hungary’s trade exports totaled €434m EUR between 2010 and 2015.