Croatia has issued permits for the exploration of five geothermal blocks situated in the Drava River basin in the country's northeastern region. This move is set to pave the way for a substantial €400 million ($421.64 million) investment in green energy initiatives, according to officials who made the announcement on Friday.
The Croatian Hydrocarbon Agency (CHA) has identified approximately 200 wells originally drilled for oil and gas exploration, in addition to pinpointing 75 areas deemed suitable for district heating or power generation projects. These findings project the potential to generate over 1 gigawatt (GW) of energy from these geothermal sources.
Following a thorough evaluation of 16 bids submitted by 11 local and foreign companies competing for six available blocks, the Ministry of Economy and Sustainable Development has granted exploration permits to three entities. These include the renowned oil company INA, the UK-funded company IGeoPen, and the Turkish-funded firm Viola Energy Generation, as stated by the CHA.
It's worth noting that one site's bid was annulled, as no bidder expressed interest in it, according to Martina Tuschl, the director of the CHA's geothermal energy sector.
“The works encompass a total of 21 geothermal blocks,” Tuschl stated in the official announcement. “The expected investment value stands at over €400 million, with the collective potential of all sites estimated at approximately 600,000 megawatt hours (MWh) of electric energy.”
Of the total investment, 40% is earmarked for drilling activities, while the remainder will be allocated for the construction of electric power plants over the coming years.
Davor Filipović, the Minister of Economy and Sustainable Development, highlighted that the energy produced from these geothermal sources will be sufficient to power approximately 200,000 households. The ministry has shown its commitment to the CHA's research into geothermal potential by providing €30 million in support.
The CHA also noted that the geothermal gradient in the Croatian Pannonian region is 60% higher than the European average.
Croatia, an EU member state that currently imports up to 40% of its energy requirements, has set ambitious goals to increase the share of electricity generated from renewable sources to 60% by the year 2030.
