Galeria Petar Smajic in Ernestinovo, Croatia (source: Rp031, CC BY-SA 4.0, via Wikimedia Commons)The Star Energy Group had been previously known as IGas Energy plc following the rebranding announced in mid-2023. UK-based geothermal heat developer GT Energy was acquired by IGas back in 2020.
GTEC acquired the interest in A14 Energy from Peninsula International Pte Ltd (Peninsula). The transaction was done for EUR 1.3 million in cash, with additional considerations including EUR 0.1 million for guarantees to the Croatian Hydrocarbon Agency and EUR 0.2 million for ongoing appraisal expenses for the Ernestinovo license area.
Moreover, GTEC has entered into a strategic shareholders’ agreement with Peninsula for the joint development, construction, and operation of geothermal projects in Croatia. Joint bids for three licenses had already been submitted by GTEC and Peninsula for the ongoing geothermal licensing round. The results of these bids are expected to be announced by December 2023.
The acquisition is consistent with the strategy of Star Energy to transform into a geothermal developer, owner, and operator, with a move towards electricity generation. GT Energy had previously been selected as the preferred contractor to deliver a geothermal heat solution for the Salisbury District Hospital NHS Trust in Wiltshire, England.
Aside from expanding the reach of Star Energy to the Croatian geothermal market, the acquisition also brings onboard an experienced team of geological and geothermal professionals.
The Ernestinovo geothermal license area
The Ernestinovo license area corresponds to a 76-square kilometer area in the Pannonian Basin. Three deep exploration wells have been drilled and a 2D seismic data had already been collected and processed.
Based on preliminary surface study results and well productivity estimates, the development strategy for Ernestinovo will be for a 10-MW geothermal power plant using ORC technology. Four producing wells and two injection wells will be utilized, with two of these wells planned as re-entries of abandoned oil and gas wells.
