London-based Star Energy Group has acquired a 51% stake in A14 Energy, which owns a geothermal waters exploration license in Ernestinovo, Croatia. The company plans to build a 10 MW geothermal power plant, the first of its kind in Croatia. The Ernestinovo exploration license spans 76.6 square kilometres and includes three drilled deep exploration wells and 250 kilometres of 2D seismic data. Based on preliminary heat reserves and well productivity estimates, a 10 MW electricity generation plant (ORC) is planned. The company plans to prepare four producing and two injecting wells and connect to the Ernestinovo substation, which is connected via 400 kV transmission lines to Zagreb, Hungary, Serbia, and Bosnia and Herzegovina.
Star Energy has step-down transformers for 110 kV and 85 kV. The transaction further develops Star Energy’s strategy to transition into a geothermal developer, owner, and operator, diversifying regulatory risk and providing an entry into the electricity generation sector. The geothermal sector is a fundamental component of the energy transition, providing long-term baseload electricity and heat generation. There are six geothermal exploration areas in four Croatian counties.
In recent years, the geothermal energy market in Croatia has experienced notable development, driven by a commitment to sustainable practices and a growing awareness of the benefits of renewable energy sources.
Croatia’s geothermal potential is significant, with favorable geological conditions, especially in regions such as the Pannonian Basin and the Dinaric Alps. Ongoing exploration activities have identified promising geothermal reservoirs, indicating a wealth of untapped resources.
The government has implemented supportive measures, including feed-in tariffs and incentives, to encourage the development of geothermal projects.
Geothermal energy in Croatia is being harnessed for various applications, including electricity generation, district heating, and direct use in agriculture and tourism. The versatility of geothermal energy allows for a wide range of applications, catering to different sectors and contributing to the country’s energy diversification goals.
Geothermal power plants, such as the Velika 1 Geothermal Power Plant in the Drava Valley, have been operationalized, adding to the country’s renewable energy capacity.
Geothermal energy is playing a crucial role in district heating initiatives, particularly in urban areas. Projects like the Bjelovar Geothermal District Heating System have demonstrated the feasibility and efficiency of utilizing geothermal heat for residential and commercial heating, reducing reliance on traditional fossil fuels.
With Croatia being obliged to conduct the same type of energy transformation as the rest of the EU under the new Green Deal policies, it seems certain that geothermal power will be one of the energy sources that will see its importance grow in the coming years.
