Cindrigo exits Slatina 3 geothermal project in Croatia
Construction of well pad for Slatina 3 geothermal drilling, Croatia at near-completion (source: Cindrigo)
Carlo Cariaga
15 Oct 2024
Cindrigo has announced their exit from the Slatina 3 geothermal project in Croatia, instead realigning focus on newly acquired geothermal assets in Germany.
Cindrigo Holdings Ltd. (Cindrigo) has announced their exit from the Slatina 3 geothermal power project in Croatia. This follows previous news of a request for a six-month extension of the exploration license for the project from the company tot the Croatian Hydrocarbon Agency.
With this decision, the UK-based renewable energy company shifts their focus to newly acquired geothermal assets, specifically three geothermal projects in the Upper Rhine Valley in Germany.
In mid-2022, Cindrigo (through Cindrigo Geothermal Limited) announced the 90% acquisition of Croatian geothermal firm EES Dravacel Energetika (Dravacel), through which the Slatina 3 project was to be developed. The company had announced plans to start drilling earlier this year, but these were halted pending the decision on the license extension request.
Cindrigo cites several reasons for their decision to exit the Croatian geothermal market, among these the “licensing delays and the lack of transparency from the Croatian Hydrocarbon Agency” and a higher expected output from their German prospects.
The company’s withdrawal from Slatina 3 also terminated its loan agreements with Petroline LLC and Tri Ri Asset Management.
Expiration of license terms and potential new co-owner
According to Croatia’s Ministry of Economy, the decision to not extend the exploration license was due to Cindrigo already receiving the maximum number of license extensions. The developer was also cited as not meeting the deadlines for drilling, and that the concession had rightfully expired as of April 2024.
Documentation submitted to the Zagreb Commercial Court indicates that Cindrigo had initiated bankruptcy proceedings at Dravacel. However, the documents also show that Swedish corporation Danir AB holds a 49.1% stake in Cindrigo Geothermal Ltd. as part of a loan agreement for £4.5 million. The new ownership framework for Dravacel will likely be clarified once the bankruptcy proceedings are completed. Prior to Cindrigo’s acquisition, 100% ownership of Dravacel was with entrepreneur Marinko Mikuli?.
Source: Cindrigo and Jutarnji (1 and 2)
