Croatia awards four geothermal water exploration permits to three local firms

Croatia's economy ministry awarded four licences for exploration of geothermal water deposits for electricity production to three local companies, the country's Hydrocarbon Agency (CHA) said.

The permits were granted for exploration works at four blocks located in the area of Slavonija, Podravina and Medjumurje in the Drava river valley, in the country's northeast, CHA said in a statement last week.

Zagreb-based Geo Power Energy Development received a licence for the Legrad-1 block, Zagreb-based Ensolx d.o.o. was awarded two licences - for blocks Ernestinovo and Merhatovec, and Mali Bukovec-based Buko Termal received a licence for the Lunjkovec-Kutnjak area.

The value of exploration works at these blocks is estimated at a total of 152 million kuna ($24 million/20 million euro), CHA said.

The four blocks - Ernestinovo, Lunjkovec-Kutnjak, Legrad-1 and Merhatovec, have a total area of 207 square kilometres.

The water temperature at the locations exceeds 100 degrees Celsius, which is the minimum required for electricity generation. The combined potential of the deposits is some 50 MW of electricity, CHA said back in June when it opened the tender.

Last month, the agency said it received nine bids from seven local and foreign bidders for the four blocks but did not reveal the names of the interested companies.

(1 euro = 7.58529 kuna)

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