29 Apr 2024

Cindrigo Acquires Three New German Geothermal Energy Projects

29 Apr 2024  by energyglobal   
Cindrigo Holdings Ltd, an active clean baseload energy developer engaged in the renewable energy sector, has announced an expansion to its European portfolio through the execution of a term sheet in respect of the acquisition of three new geothermal energy projects in Germany. These projects, situated in the renowned geothermal region of the Upper Rhine Valley, represent a strategic entry into one of Europe's most promising geothermal markets.

Cindrigo has signed a term sheet with Zukunft Geowärme GmbH (ZGW), a German geothermal project developer, to acquire a majority interest in three geothermal energy projects. The projects, located in the Upper Rhine Valley, have an initial target of approximately 90 MW (around 30 MW each), and a combined target installed potential capacity exceeding 400 MW, encompassing both geothermal power and heat generation.

Germany has one of the world's most advanced and lucrative geothermal markets, characterised by strong political support, well developed legal structure, high power prices and robust demand for heat. The German Renewable Energy Sources Act (EEG) offers a stable and transparent support scheme for electricity generation using geothermal resources with a feed-in tariff for geothermal power of €00.25/kWh, during a 20 year term. Additionally, German federal funding is available under the ‘Bundesförderung für effiziente Wärmenetze’ (BEW) a subsidy programme for geothermal district heating which covers up to 40% of construction CAPEX for heat production facilities.

The country's favourable financial and commercial environment, coupled with its extensive industrial ecosystem and proven support and track record in geothermal development, make it an attractive destination for investors and developers alike.

Lars Guldstrand, CEO of Cindrigo, commented: “Germany, Europe's largest economy, is committed to clean energy, particularly geothermal. Our strategic entry into Germany aligns with our focus on European renewable energy projects in low risk and stable jurisdictions with well-established governance, bolstering our current operations. With the recent acquisition of the 110 MW already built CHP plant In Finland adding this in Germany we will reach 200 MW under contract as a strong platform for further expansion. We are excited to leverage Germany's advanced infrastructure and supportive regulatory framework to build our market position and create new clean energy sources.”


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