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

The transaction is a significant expansion of the European portfolio of Cindrigo and marks an entry to the promising geothermal market of Germany. 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.

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 25 euro cents per kilowatt-hour (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 capital expenditure for heat production facilities.

Cindrigo is currently doing work on the Slatina-3 geothermal project in Croatia. The company has started preparations for drilling, but decided to pause pending the decision on an application for a six-month extension of the exploration license for the site.