New geothermal energy investment cycle in Croatia, region

cindrigo kaishan agreement geothermal croatia

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April 7, 2023






April 7, 2023





Chinese company Kaishan and renewable energy developer Cindrigo have agreed to develop geothermal power projects in Europe. The first is Slatina 3 in Croatia. By 2030, the joint pipeline could reach 1,000 MW.

As part of its ongoing expansion strategy, Cindrigo has announced that it has signed a framework agreement with Kaishan Renewable Energy Development, a Singapore-registered firm and member of Kaishan Group from China to develop, finance, build and operate geothermal power plants.

Cindrigo is currently developing a number of geothermal projects in the Pannonian Basin in Central Europe, while Kaishan is of the world’s largest geothermal groups.

Kaishan should be the contractor for the geothermal power plant in Croatia

The first project envisaged by the agreement is for 20 MW that Cindrigo is developing under its license for the exploration of the Slatina 3 field in Croatia, the two companies said.

Kaishan is the preferred turnkey engineering, procurement and construction (EPC) contractor and operations and maintenance contractor. The Chinese investor may also cover 70% of project finance, pending a financial review.

The companies are now exchanging technical data on Slatina 3 and are committed to the aim of reaching a final EPC agreement for Slatina 3 by the end of June.

Under the agreement, Kaishan has been granted preferred partner and vendor status for each of Cindrigo’s projects in Europe.

From Croatia the strategic long-term cooperation will extend to Cindrigo’s projects in Europe and globally as the foundation of a deliberate rollout strategy for its target portfolio of 1,000 MW, the two partners said.

Cindrigo plans to contract the construction of geothermal power plants with 200 MW in overall capacity within a year

Cindrigo aims to have contracts in place for geothermal power plant projects with up to 200 MW in total within a year, as much as 450 MW in the next three years and 1,000 MW by 2030.

Cao Kejian, Chairman of the Kaishan Group, said the company sees Cindrigo as a strong partner in the expansion of geothermal in new markets, initially in Croatia and the Pannonian Basin, with other markets to follow.

The two companies recognized the business opportunity offered by activating the enormous potential of geothermal energy in Europe, according to Lars Guldstrand, CEO of Cindrigo.

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