Exploration work to begin at Zagocha geothermal project, Croatia
View over Zagreb, Croatia (source: flickr/ Rudy Balasko, creative commons)
Carlo Cariaga
9 Sep 2022
Exploration works are set to start at the Zagocha geothermal project in Croatia to characterize the resource in preparation for a planned 20-MW ORC power plant.
Local news reports that exploration work is set to begin for the 20-MW Zagocha geothermal project near Slatina, Croatia. The project is being developed by Geo Power Zagocha and will be the largest ORC plant in the European Union upon completion. The ORC system will be supplied by Italian manufacturer Turboden.
We had previously reported on the application of Geo Power Zagocha for building the Zagocha geothermal power plant in the Cadavica municipality. Three wells had already been drilled in this area with Well PS-5 being identified as an early candidate for utilization. A later update indicated that construction will start by the summer of 2021, but these plans seemingly did not push through.
Exploratory work will involve drilling, overhauling, and hydrodynamic testing of Well PS-5 to characterize the geothermal resource in the area. Contracts have been secured with a dozen domestic and foreign companies for associated works including preparatory work and construction services, connection with the local hydrant network, and Magnetotelluric (MT) measurements. The total value of the works in this phase of the project is about HRK 24 million (USD 3.2 million) and will provide permanent engagement to around a hundred workers.
With the completion of the works, Geo Power Zagocha will have fulfilled its investment obligations as prescribed by the Ministry of Economic and Sustainable Development as part of the permit granted for the exploration and exploitation of the geothermal field.
Further investment on the project will depend on the speed of action of the Ministry. In addition to the already secured quota of 20 MW, a premium contract for the purchase of electricity produced from the geothermal power plant is being anticipated.
“After the Ministry provides us with the Electricity Purchase Agreement, there will no longer be any obstacles to the realization of this significant investment worth 100 million euros.” said Geo Power Zagocha entrepeneur Dragan Jurilj. “Namely, it was previously announced that the investment in the realization of this project would be somewhat lower, but due to the crisis and high inflation, the investment has increased significantly by as much as 30 percent and is now estimated at this stated amount.”
Dragan Jurilj is also an investor in Geo Power Energy Development, which operates the 16.5-MW Velika Ciglena geothermal power plant, together with this partner Goran Pavlovic.
Source: Lider Media
