Geothermal project in eastern Croatia for sale
Date: January 19th 2024
Author: Dalibor Dobrić
Category: En.vision
Topic:
Electricity
, Renewables
, Heating
Vukovar-Srijem county and the municipality of Babina Greda in eastern Croatia are seeking a strategic partner to help them develop a geothermal power production project with potential capacity of up to 15 MW.
According to the tender published by the local authorities last week, the minimum price for a 90% share in the company which holds the licence for the project, Geotermalni Izvori, is EUR 898,020.
According to preliminary studies, the Babina Greda 2 geothermal field has an estimated water temperature of 140C and electricity production potential of 7.5-15 MW — three well pairs can be built in the exploration area, at 2.5-5 MW per well pair. The potential for thermal energy is 7.5-13.1 MW per well pair, or 22.5-39.3 MW in total.
Geotermalni Izvori received a licence for exploration of geothermal potential in the field in eastern Slavonia in 2019 and it expires in October of this year, but can be renewed.
Strategic partner
The local authorities are selling the majority stake in the company because they cannot finance the construction of the exploration wells, Vukovar-Srijem county told Montel in an emailed response.
“The funds for the well construction were planned to be sourced from European and national funds since the fiscal capacity of Vukovar-Srijem County is not sufficient for the implementation of a project of such a large scope,” the county said.
“As soon as it became apparent that these funds could only be used to finance projects intended for heating (but not for the production of electrical energy), the decision to find a strategic partner was made,” it added.
The local authorities did not want to comment on the level of interest from potential investors, as the tender is still open until 26 January.
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