Croatia's Hydrocarbon Council, CROSCO in 40 mln euro geothermal deal

Under the deal, CROSCO will build geothermal drills on location in Velika Gorica, Zapresic, Osijek and Vinkovci, in a move to assess the geothermal potential that could be used for heating of the respective towns, the two companies said in a joint statement.

CROSCO, part of Croatian oil and gas group INA [ZSE:INA], won the deal in tender for public procurement. STSI, another INA company, will provide support for the project by obtaining permits, offering technical assistance, and preparing the locations.

The beginning of the preparatory works for this project will start at the end of this year and the first drilling works will start by the spring of next year.

The Croatian Hydrocarbon Council has provided funding for the assessment of geothermal potential on these locations from the European Union-funded recovery and resilience facility, which includes measures to improve the sustainability and diversity of EU members’ energy supplies.

INA’s shares last traded on Tuesday on the Zagreb bourse, when they closed flat at 500 euro.

($ = 0.923 euro)