EN

EUR 30 million to explore geothermal potential

02.11.2023.

The Minister of Economy and Sustainable Development, Davor Filipović, and the director of the Environmental Protection and Energy Efficiency Fund, Luka Balen, signed a contract with the president of the Management Board of the Hydrocarbon Agency, Marijan Krpan, on financing the project of preparation and exploration of geothermal potential for district heating. The project is worth almost 30 million euros and financing for its implementation is provided under the National Recovery and Resilience Plan 2021-2026.

 Minister Filipović stressed the importance of this contract for further green energy transition in Croatia and greater use of geothermal energy, which is in line with the EU Green Deal.

"After the completion of the tender for the exploration of geothermal potential in six exploration fields, we will continue with projects for using RES, for higher energy production on Croatian territory thus reducing dependence on external energy sources. With this project, we open the possibility of providing heating to cities using geothermal energy, as well as the use of geothermal energy in agriculture. This is also a follow-up on everything we have done so far to promote greater use of clean, green energy, and the Ministry will support all similar projects. This has been a point of discussion in Croatia or a long time, and this Government is now implementing it," minister Filipovic said.
 
Director of the Fund Luka Balen remined that in mid-September the Fund and the Croatian Hydrocarbon Agency signed a contract on cooperation in the planning and implementation of programmes to encourage the use of geothermal and other renewable forms of energy. "This project is just one in a series of projects that encourage the green transition and investment in renewable energy sources, which is strongly endorsed and incentivised by the line Ministry of Economy and Sustainable Development. Accordingly, the Fund will co-finance from national funds the programme of energy renovation of family houses worth a record 120 million euros, and we will also grant incentives for the installation of photovoltaic power plants on houses,” said director Balen, adding that that the implementation of the project for which the contract was signed would be monitored by the Fund's Intermediate Body, which was usually in charge of controlling projects co-financed from EU programmes.

 As part of the project, six locations with the existing district heating systems and conclusive geothermal potential will be investigated.
 
"The drilling will start next year in the vicinity of Velika Gorica and Osijek, and four additional areas selected from our database that will be explored are located around Zaprešić, Sisak, Vukovar and Vinkovci. Since these are only exploratory actions and testing, meaning there is some risk involved, we believe there is geothermal water that we can use for heating, which is confirmed by the surrounding drill sites in the area,” emphasized the president of the Board of AZU Marijan Krpan at the signing of the contract, announcing the upcoming call to tender for contractors.