Cindrigo acquires Croatia's Dravacel to build 20MW geothermal power plant

UK-based renewable energy company Cindrigo said it has signed a deal to acquire 90% of Croatian company EES Dravacel Energetika, which holds a geothermal exploration licence, with a view of developing a 20 MW geothermal power plant.

The buyer is acquiring the majority stake for a consideration of $500,000 (475,200 euro) working capital to Dravacel and is also responsible for the delivery of the development capital required to construct the planned geothermal power plant, Cindrigo said in a press release last week.

The seller is individual Marijan Mikulic. Dravacel will retain the remaining 10% interest. Cindrigo signed the deal via its subsidiary Cindrigo Geothermal Limited.

The project is in respect of 57,926 square metres located in Slatina, north Croatia, in a region with anticipated highly energetic geothermal resources, according to the press release.

The project, once operational, is anticipated to annually produce an EBITDA of £12 million ($15 million/14 million euro), with potential dividend streams to Cindrigo.

Financing for project construction and commissioning will be sought primarily on a project finance basis alongside the potential issue of certified green bonds.

Cindrigo said in March it has acquired Canadian originator and financier of power generation and cleantech Energy Co-invest Global (ECG), whose active projects include three geothermal licence blocks in Croatia.

“Following our acquisition of ECG, we are now delighted to be finalising the planned acquisition of the highly prospective CCP Slatina project in Croatia. This marks an important step towards achieving our target of securing our first step of 200MW contractual geothermal projects within 2023,” Lars Guldstrand, CEO of Cindrigo, said in the press release.

(1 pound = 1.162 euro)

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