Town of Đurđevac in Croatia picks private partner for geothermal project

The City Council of Đurđevac voted to establish a partnership with local firm Nova natura for the exploration and exploitation of geothermal potential. The plan is to build a combined heat and power plant with a capacity of 13 MW for the production of electricity and 21 MW for thermal energy.

Đurđevac could get a geothermal plant at the site of former gas drillhole Leščan by mobilizing its own resources and domestic private funds. The local authority adopted the proposal for municipal enterprise Stari grad to establish a partnership with the company Nova natura from the same small town in the Koprivnica-Križevci Country in Croatia’s north.

The City Council said it was the only firm that responded to the public call for exploration and exploitation of geothermal potential. Mayor Hrvoje Janči pointed out that one of the criteriums was for the local authority to get thermal energy for public institutions at a cost lower than commercial prices, and that another was that the plant would need to meet the demand from the users of the local entrepreneurial zone.

Public institutions want heat for free

An agreement needs to be signed to determine the quantity of heat that the town would use without charge, the conditions for buying additional amounts of energy for supplying companies, the announcement reads. The partners would define their relationship with regard to utilization of the remaining drillholes at the entire Leščan geothermal field as well as the way to apply together for the exploration and exploitation contest expected to be launched soon by the government’s Hydrocarbon Agency (CHA).

It would be one of the biggest private investments in Croatia, worth over EUR 100 million, City Council Chair Željko Lacković said. Đurđevac had little over 8,000 inhabitants at the last census.

Nova natura was founded on the basis of the old Natura agro cooperative. The firm is part of the Osatina group, which produces, fruit, vegetables, grain, oilseeds, meat, humus and biogas. Its headquarters are in Viškovci in eastern Slavonia.

Nova natura earmarked EUR 66.3 million for local investments

Mayor Janči said the company is prepared to secure HRK 20 million (EUR 2.7 million) for the exploration of the existing well and another HRK 50 million (EUR 6.6. million) to drill a new one, followed by an investment of HRK 110 million (EUR 14.6 million) for the construction of a geothermal facility for the production of electricity (13 MW) and heat (21 MW).

Nova natura said it would invest over HRK 500 million (EUR 66.3) in the municipal territory over the next three years and open 160 jobs, according to the announcement, which adds the funds would be used to increase the coal storage capacity, orchards, the construction of glass houses on 24 hectares and the establishment of a produce sales center.