INDUSTRY I

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Hungary hopes to improve the efficiency and competitiveness of its major energy consuming industries through this project. It aims to achieve this by containing the country's energy import bill by reducing industrial energy consumption, greater use of domestic energy, and the development of measures that will strengthen the country's industrial energy rationalization program. There are four main features included in the Industrial Energy Diversification and Conservation Project. The first two involve (a) institution building; and (b) support for the Energy Rationalization Facility of the National Bank of Hungary. The third component provides; (c) support for four main activities in energy diversification and conservation; i.e. substitution of domestic coal for imported coking coal as well as heating oil derived from imports; substitution of natural gas for oil; substitution of domestic coal for oil in the alumina industry; and energy rationalization with conservation in the petroleum refining industry. Lastly, the project provides for; (d) technology development in the field of industrial energy.