Chapter 3: Hungary
(continued)
High demand in the air sector was identified for instrumentation and process control/software, while growing demand was expected for technologies for air sampling/laboratory analysis for gaseous emissions, and for air pollution control/flue gas purification equipment.
Demand for environmental technologies in the water and wastewater sector was moderate. The most needed technologies in this category were those for industrial wastewater treatment. High demand was identified for industrial and municipal wastewater sludge treatment and disposal technologies. Technologies where demand is expected to rise included those for the construction of collection networks for municipal and industrial wastewater; water recycling and reuse for potable water and industrial wastewater; spill control and containment/clean-up for surface and groundwater; instrumentation, process control, and software for industrial wastewater; standard and advanced treatment technologies for industrial wastewater; and inspection and reconditioning of existing wastewater collection networks.
Waste management appears to be one of the most promising environmental market sectors in Hungary. Significant opportunities are anticipated in hazardous waste disposal, followed by radioactive and industrial waste management. High demand was identified for technologies used for hazardous waste site remediation/clean-up of contaminated land; for radioactive waste, equipment for sample analysis/waste characterization; site monitoring; and waste collection, transportation and storage. Demand was expected to rise for pollution prevention/waste minimization equipment for industrial and hazardous waste; technologies for recycling/resource recovery for industrial waste; technologies and equipment for waste collection, transportation and storage of hazardous waste and hazardous waste site monitoring; and technologies for spillage control/decontamination for hazardous waste.
Demand for energy-related technologies was generally high, especially in comparison with other environmental sectors. Technologies where high demand was identified included: instrumentation; and equipment for retrofitting/rehabilitation of existing systems. Demand was expected to increase for equipment related to process management and control; new and efficient energy and heat generation systems; and heat recovery and energy saving equipment. The recent privatization of energy utility companies in Hungary is likely to speed up the modernization of the sector, which, combined with stricter air pollution regulations, seems to be the major reason behind the anticipated high demand in the sector. Many experts noted that there were significant market opportunities in decreasing energy losses in production process, transmission, and consumption.
In the noise, vibration and occupational health and safety sector, high demand was identified for abatement technologies (e.g. insulation, absorbtion), and for protection equipment in the occupational health and safety sector. Increasing demand was also identified for noise and vibration abatement technologies in the construction industry.
The following scale was used in ranking: 5 - highest, and rapidly growing demand, 4 - high demand, likely to grow, 3 - moderate, slowly growing demand, 2 - low demand, will not grow, 1 - very low and decreasing demand, blank - no opinion.
Figures in cells show the average score, while those in brackets represent the number of responses.
| TABLE 3.17: DEMAND FOR AIR QUALITY-RELATED TECHNOLOGIES | ||
|---|---|---|
| Ambient air | Gaseous emissions | |
| Air sampling/laboratory analysis | 3.4 (8) | 3.9 (7) |
| Continuous-basis monitoring | 2.7 (9) | 2.6 (5) |
| Air pollution control/flue gas purification equipment (e.g. filters, scrubbers) | 3.1 (4) | 3.6 (7) |
| Gas detection/warning devices | 2.5 (4) | 3.0 (4) |
| Best available technology for emission abatement at source/cleaner production (e.g. low emission burners) | 3.1 (5) | 3.4 (5) |
| Instrumentation and process control/software | 4.0 (6) | 4.0 (6) |
| Technologies in demand: #1 instrumentation and process control/software Technologies where demand is expected to rise: #2 air sampling/laboratory analysis (gaseous emissions); #3 air pollution control/flue gas purification equipment |
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Business representatives and government officials seemed to agree that instrumentation and process control/software was an area in high demand.
Respondents from the government sector also indicated growing demand was likely for air pollution control and flue gas purification equipment. The need is driven by Hungary's commitment to cut SO2, NOx and freon emissions, according to international treaties (Geneva, Montreal), and by the harmonization of Hungarian environmental legislation with that of the European Union (a new law on air emissions is expected to come into force in 1997). Interestingly, respondents from the business sector evaluated demand for air pollution control and flue gas purification equipment as moderate, frequently expressing an opinion that no significant growth in spending can be expected unless applicable regulations and the level of enforcement change. Currently, only new investments create demand for this kind of equipment.
Local governments indicated a need for air quality monitoring systems in areas where air is heavily polluted by traffic and vehicles. However, respondents from the business sector did not indicate a high demand for air monitoring systems.
| TABLE 3.18: DEMAND FOR WATER AND WASTEWATER-RELATED TECHNOLOGIES | ||||
|---|---|---|---|---|
| Surface and Ground Water | Potable (Drinking) Water | Municipal Wastewater | Industrial Wastewater | |
| Monitoring | 3.3 (9) | 2.5 (4) | 2.7 (9) | 3.3 (10) |
| Sampling/laboratory analysis | 3.2 (9) | 3.0 (8) | 2.6 (11) | 3.1 (11) |
| Construction of collection/supply networks | 2.9 (4) | 2.5 (5) | 3.7 (13) | 3.7 (10) |
| Inspection and reconditioning of existing supply and collection network | 3.3 (4) | 3.2 (6) | 2.8 (9) | 3.5 (10) |
| Standard physical, chemical, and biological treatment processes | 3.0 (1) | 3.5 (4) | 3.4 (13) | 3.5 (12) |
| Advanced (tertiary) treatment processes (e.g. UV/ozonation, activated carbon, phosphate removal, reverse osmosis) | 2.8 (4) | 3.5 (4) | 3.4 (10) | 3.5 (12) |
| Sludge treatment and disposal | 3.0 (2) | 3.3 (2) | 3.7 (11) | 4.0 (10) |
| Best available technology for pollution prevention/waste minimization | 3.0 (3) | 2.0 (1) | 2.5 (2) | 3.4 (5) |
| Water recycling and reuse | 3.0 (3) | 3.8 (3) | 3.3 (7) | 3.6 (10) |
| Spill control and containment/clean-up | 3.8 (4) | 3.0 (3) | 2.8 (6) | 2.7 (7) |
| Quality restoration and decontamination | 3.5 (6) | 3.4 (5) | 3.2 (5) | 3.2 (5) |
| Instrumentation/process control/software | 3.0 (3) | 3.0 (2) | 3.4 (5) | 3.7 (7) |
| Technologies in high demand: #1 sludge treatment and disposal - industrial and municipal wastewater. Technologies where demand is expected to rise: #2 construction of collection networks - municipal and industrial wastewater; #3 water recycling and reuse - potable (drinking) water and industrial wastewater; #4 spill control and containment/clean-up - surface and groundwater; #5 instrumentation, process control, and software - Industrial wastewater; #6 standard and advanced treatment - industrial wastewater; #7 inspection and reconditioning of existing wastewater collection networks |
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High demand was identified for sludge treatment and disposal technologies for industrial and municipal wastewater. Technologies where demand is expected to rise included those for: construction of collection networks for municipal and industrial wastewater; water recycling and reuse for potable water and industrial wastewater; spill control and containment/clean-up for surface and groundwater; instrumentation, process control, and software for industrial wastewater; standard and advanced treatment technologies for industrial wastewater; and inspection and reconditioning of existing wastewater collection networks.
As regards technologies for surface and ground water, moderate growth in demand was expected for quality restoration and decontamination, and clean-up technologies. Respondents from the government sector generally gave higher rankings in this category than business representatives. The demand is driven by the threat to water resources from wastewater discharges and soil contamination (e.g. hazardous compounds and hydrocarbon contaminated areas identified in the course of privatization; oil contamination of the Soroksar arm of the Danube; dichloroethyl contamination of the water reserves in Szekszard, etc.).
Both groups of respondents expressed similar opinions about the need for water quality monitoring systems, although demand is still only growing slowly. In the municipality of Budapest, however, some 600 monitoring points have already been established for the regular checking of water quality, while the levels of radioactivity in the Danube are also inspected regularly.
Among technologies for potable water, increasing demand was identified for water reuse and recycling equipment, standard and advanced treatment process technologies, and equipment and technologies for the reconstruction of existing water supply networks. Some experts noted that there was a significant need for water loss and leakage control in water distribution networks, and suggested strong growth potential in this area. Respondents also expected a growing demand for advanced water treatment processes, as currently used equipment rapidly becomes outdated and will have to be replaced. Water-saving household appliances are also increasingly sought as water charges increase.
Demand for technologies for the treatment of municipal wastewater is expected to grow in the near future. There is a large gap between the percentage of the population with water supply and those connected to a sewage system in Hungary. In response, a large governmental program has been prepared which specifies that wastewater treatment should be available in all communities with more than 2000 inhabitants by the year 2010. As a result, growing demand was identified for construction of wastewater collection networks, standard and advanced wastewater treatment processes, and instrumentation and process control. Several respondents indicated significant demand can be expected for sludge treatment and disposal technologies, although the major impediments in this field are the shortage of available areas for lagoons, and an unclear situation with respect to land ownership. Finally, although it is not evident from Table 3.18, some experts mentioned business opportunities related to upgrading existing wastewater treatment plants, e.g. by adding a biological treatment stage, deepening reservoirs, or introducing modern aeration systems. Significantly, many respondents indicated that suppliers' ability to mobilize additional financing was a strong competitive advantage.
Finally, increasing demand in industrial wastewater treatment was identified for sludge treatment and disposal, instrumentation and process control, construction and modernization of collection networks, water recycling and reuse, and standard and advanced treatment technologies. Opinions were divided on the need for the construction of new treatment plants and collection networks - some experts thought that the decline in industrial production has left existing facilities under-utilized. The demand for advanced (tertiary) treatment technologies is driven by stricter limits for pollutant discharges to receiving water bodies, and by on-going replacement of obsolete equipment, while the rising costs of water supply are expected to lead to growing demand for water reuse and recycling technologies. Finally, significant demand was identified for industrial wastewater sludge treatment technologies, similar to the situation decribed for municipal wastewater sludge.
It should be noted that, strictly speaking, demand in the water and wastewater sector, as identified in Table 3.18, was moderate. This is surprizing, given the priority given in the state environmental policy to the protection of water resources and improvement of drinking water quality. Therefore, in the researcher's opinion, the technologies in the sector where demand is expected to rise will be in increasingly high demand in a short span of time.
| TABLE 3.19: DEMAND FOR WASTE MANAGEMENT-RELATED TECHNOLOGIES | ||||
|---|---|---|---|---|
| Municipal Solid Waste | Industrial Waste | Hazardous Waste | Radioactive Waste | |
| Waste collection/transportation and storage | 3.5 (17) | 3.3 (17) | 3.7 (14) | 4.0 (3) |
| Sample analysis/waste characterization | 3.0 (11) | 3.5 (14) | 3.5 (12) | 4.5 (2) |
| Site monitoring | 3.2 (14) | 3.5 (12) | 3.7 (9) | 4.3 (3) |
| Landfill disposal | 3.4 (17) | 3.3 (12) | 3.0 (11) | 2.2 (3) |
| Incineration | 2.4 (14) | 2.5 (13) | 3.4 (14) | 1.0 (1) |
| Composting/biomass conversion | 2.7 (17) | 2.7 (10) | 3.3 (3) | - |
| Best available technology for pollution prevention/waste minimization | 2.9 (10) | 3.8 (12) | 3.8 (8) | 4.0 (2) |
| Recycling/resource recovery | 2.9 (13) | 3.7 (15) | 3.3 (10) | - |
| Spillage control/decontamination | 2.7 (7) | 3.0 (8) | 3.6 (7) | 4.0 (1) |
| Site remediation/clean-up of contaminated land | 2.6 (9) | 3.4 (12) | 4.3 (10) | - |
| Technologies in high demand: #1 site remediation/clean-up of contaminated land (hazardous waste); #2 sample analysis/waste characterization; site monitoring; waste collection/transportation and storage (radioactive waste) Technologies where demand is expected to rise: #3 pollution prevention/waste minimization (industrial and hazardous waste); #4 recycling/resource recovery (industrial waste) #5 waste collection/transportation and storage (hazardous waste); #6 hazardous waste site monitoring; #7 spillage control/decontamination (hazardous waste) |
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Technologies in high demand included: hazardous wastesite remediation/clean-up of contaminated land; and, for radioactive waste, equipment for sample analysis/waste characterization; site monitoring; and waste collection, transportation and storage.
Demand was expected to rise for pollution prevention/waste minimization equipment for industrial and hazardous waste; technologies for recycling/resource recovery for industrial waste; technologies and equipment for waste collection, transportation and storage of hazardous waste and hazardous waste site monitoring; and technologies for spillage control/decontamination for hazardous waste.
Demand for technologies related to municipal solid waste management was low to moderate, although growing demand was expected by several interviewees for construction of landfills. The primary obstacle to the construction of new landfills is the objection made by the local population ("not in my backyard" attitude), and the lack of financing - local governments must provide two thirds of project financing (although establishment of regional landfills is supported financially by the government). In the vicinity of Budapest, there are also problems with the availability of land. It was noted that suppliers' ability to attract additional financing was a strong advantage.
Increasing demand was expected for technologies related to waste collection, transportation and storage, since aging existing equipment must be modernized or replaced. With the introduction of selective waste collection systems, demand is likely to increase, and so is the need for temporary storage, sorting and bailing technologies. Respondents active in composting and biomass conversion usually specified higher demand for their services than environmental technology experts in general.
With respect to the treatment and disposal of industrial waste, increasing demand was identified for pollution prevention and waste minimization equipment, and resource recovery and recycling technologies. The major factor driving demand is the increasing price of landfill disposal, currently at HUF 500-800 (USD 3-5) per cubic meter of non-hazardous industrial waste. The price is expected to double or triple in the near future. Interesting examples of on-going waste minimization projects include the battery factory Perion, or chemical company Viscosa. The projects are implemented with the assistance of the World Environment Center/WEC/.
High and increasing demand was identified for hazardous waste technologies. The new waste law is a key factor behind this, although it was noted that many companies are not willing to undertake sound waste management practices which are beyond the requirements specified by the law. The highest demand in the entire waste management category was identified for those technologies related to site remediation and clean-up of contaminated land, which often results from the current practice of "temporarily" storing hazardous waste on-site until a suitable disposal method is identified. For instance, the Budapest Chemical Works (Budapesti Vegyimuvek) has thousands of drums of hazardous chemicals stored in Gare, in southern Hungary. Finally, a high number of legal and illegal (uncatalogued) hazardous waste disposal sites will have to be remediated.
Hazardous waste generation, currently stagnant because of the decline in industrial activities, is expected to increase as the economy expands. However, there is still no system in place for the proper management of hazardous waste. Only one major hazardous waste incinerator is currently operating in Hungary (in Dorog, with a capacity of 25,000 tons per year) while a few smaller incinerators, mostly outdated, are used at industrial sites or hospitals. Generally, the disposal of hazardous waste is based either on landfilling, or the use of "temporary" storage sites as discussed above. No decision has yet been made about the number and location of new hazardous waste incinerators (financing has not been secured yet, either), while the construction of new landfill sites is hampered by the shortage of suitable locations. This situation, combined with rapidly growing waste disposal prices and stricter regulations, is the key factor behind the identified growth in demand for technologies relating to pollution prevention and waste minimization. It is worth noting that pollution prevention and waste minimization are two of the major priorities in the government's current environmental policy.
A growing demand was also identified for technologies for waste collection, transportation, and storage of hazardous waste, as well as for equipment providing for continuous monitoring of existing landfills.
Finally, high and growing demand was indicated for most technologies related to radioactive waste management (especially for sample analysis and waste characterization, site monitoring, and waste collection and transport). However, it is necessary to stress that even though the few respondents who addressed the issue expected high and growing demand, in terms of market share, radioactive waste management makes up only a small proportion of the entire waste management market in Hungary.
| TABLE 3.20: DEMAND FOR ENERGY-RELATED TECHNOLOGIES | ||
|---|---|---|
| Energy and Power Generation | Other Industrial Sectors (e.g. manufacturing, chemicals) | |
| New/efficient energy and heat generation systems | 3.6 (8) | 3.8 (6) |
| Retrofitting/rehabilitation of existing systems | 4.0 (6) | 3.8 (6) |
| Process management and control (e.g. boiler tune-up, fuel efficiency optimization) | 3.9 (7) | 3.9 (7) |
| Heat recovery and energy savings (e.g. insulation) | 3.6 (8) | 3.7 (7) |
| Alternative/renewable energy systems (e.g. geothermal, biomass, solar) | 2.7 (6) | 2.5 (4) |
| Alternative (non-CFC) refrigerants | 3.4 (5) | 3.5 (4) |
| Instrumentation | 3.9 (7) | 4.0 (5) |
| Technologies in high demand: #1 instrumentation; #2 retrofitting/rehabilitation of existing systems; Technologies where demand is expected to rise: #3 process management and control; #4 new and efficient energy and heat generation systems; #5 heat recovery and energy savings |
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Technologies where high demand was identified included: instrumentation; and equipment for retrofitting/rehabilitation of existing systems. Demand was increasing for equipment related to process management and control; new and efficient energy and heat generation systems; and technologies related to heat recovery and energy savings.
The recent privatization of energy utility companies in Hungary is likely to speed up the modernization of the sector, which, combined with stricter air pollution regulations, seems to be the major reason driving the expected high demand in the sector.
Although it is not immediately obvious from Table 3.20, many experts noted that there were significant market opportunities in decreasing energy losses in production processes, transmission, and consumption, and expected that demand for heat recovery and energy saving technologies will grow in the near future. According to several studies, it is possible to improve the efficiency of central heating systems and older gas heating installations in a cost-effective way, through changing obsolete equipment and modernizing distribution systems. The planned introduction of a billing system based on actual energy consumption is likely to further stimulate the demand for energy saving technologies. A governmental program is under preparation to help finance the modernization of about one fifth of all Hungarian flats (approx. 700 thousand) in concrete block apartments, via improved insulation and better heating systems.
Similar to other market sectors, suppliers who are able to mobilize additional financing enjoy a competitive advantage, because the modernization of heating systems requires high investment, currently not available to potential investors. Interestingly, some foreign assistance to the sector is already available in Hungary (e.g. the above-mentioned German government-funded project to increase energy efficiency in prefabricated concrete blocks of flats).
| TABLE 3.21: DEMAND FOR NOISE, VIBRATION AND OCCUPATIONAL HEALTH AND SAFETY RELATED TECHNOLOGIES | ||
|---|---|---|
| Noise and Vibration | Occupational Health and Safety | |
| Instrumentation/measuring and control devices | 2.5 (6) | 3.3 (4) |
| Protection equipment | 3.0 (4) | 4.0 (2) |
| Abatement (insulation, absorbtion) | 3.7 (6) | 4.0 (4) |
| Electromagnetic field exposure | 2.5 (2) | 3.0 (1) |
| Technologies in high demand: #1 abatement (OHS) ; #2 Protection equipment (OHS) Technologies where demand is expected to rise: abatement (noise and vibration) |
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Increasing demand was also identified for noise abatement technologies in the construction industry (e.g. insulation and absorbtion materials for use at airports, along busy roads, and in the vicinity of industrial plants with excessive noise levels).
| TABLE 3.22: END-USERS OF ENVIRONMENTAL TECHNOLOGIES | |
|---|---|
| Category | End-users by Sector |
| Air | Energy sector, power plants, chemical works, transportation, waste incinerators, metallurgy |
| Water and Wastewater | Municipal water and wastewater service companies, chemical industry, energy sector, mining, food processing industry, pharmaceutical industry, textile industry, agriculture (diluted manure) |
| Waste | Municipal service companies, mining, energy sector, other industries (construction, textile, paper, food), aluminum industry (red mud), agriculture |
| Energy | Municipal energy supply companies, energy and power generation sector (production and service), raw material processing industry (steel, aluminum), chemical industry |
| Noise and Vibration and Occupational Health and Safety | Transportation, public transport, all manufacturing activities, industrial sites located in residential areas, energy sector, textile industry, airports |
Additionally, the transport sector was identified as a significant end-user of technologies for air pollution control, and noise and vibration abatement. Water and wastewater, and waste management technologies are widely used in the mining sector, agriculture and food processing, and textile industry.
Interestingly, the ranking of end-users in each sector, and especially the high position of municipalities, reflects the decline in industrial production in the period since 1991, when many factories ceased operation owing to financial constraints. The closures resulted in a decrease in industrial pollution and discharges. This, combined with the fact that many significant environmental problems in industry have already been solved, has led to the municipal sector being one of the major end-users of environmental technologies.
