Cindrigo acquires 90% stake of Croatian geothermal firm

Cindrigo acquires 90% stake of Croatian geothermal firm View over Slatina, Croatia (source: Google Maps, screenshot)
Carlo Cariaga 16 Jun 2022

With a controlling stake in Dravacel, Cindrigo is now planning to develop a 20-MW geothermal power plant in Slatina, Croatia.

Cindrigo Geothermal Ltd. (Cindrigo), a subsidiary of Guerney-based energy producer Cindrigo Holdings Ltd., has acquired a 90% stake in Croatian geothermal firm EES Dravacel Energetika (Dravacel). With this acquisition, Cindrigo plans to develop a 20-MW geothermal power plant in Slatina 3, a 57,026-square-meter area in North Croatia for which Dravacel holds a geothermal exploration license.

“Dravacel has prepared formal requests for all permits necessary to obtain the right to implement a well-defined drilling programme to access the geothermal heat resource and the necessary permit is anticipated to be issued shortly,” commented Cindrigo.

Cindrigo expects the geothermal project to generate earnings of about GBP 12 million (approx. USD 14.7 million) per year with potential dividend streams to itself. This acquisition is part of Cindrigo’s long-term growth strategy to secure up to 1,000 MW of contractual licenses by 2030.

We had already previously reported on the acquisition by Cindrigo of Energy Co-invest Global Corp. (ECG), an established international energy developer. ECG also had three geothermal license blocks in Croatia, each with a planned capacity of approximately 20 MW. ECG is also the largest shareholder of GEG ehf., an Iceland-based geothermal Engineering, Procurement, and Construction (EPC) contractor and project owner.

“Geothermal is an exciting and high growth clean energy resource, which is forecast to play an increasingly prominent role as a green baseload power source, amid a spiralling energy price environment and global shift to renewable energy,” said Cindrigo CEO Lars Guldstrand.

Source: Morning Star