Monte Amiata, Tuscany
In 2022, the Italian government approved Sorgenia’s proposals for a 10-MW binary geothermal power plant in Val di Paglia and a 5-MW binary geothermal power plant in Poggio Montone. These projects were significant as they would have been the first geothermal facilities in Italy not operated by Enel Green Power and the first to deploy commercial-scale binary power plant technology in the country. “The evolution of the reference framework has made the implementation of the projects increasingly less sustainable from an economic point of view,” Sorgenia stated.
The company explored options to involve other operators to fund the construction of the power plants but faced difficulties in securing viable partnerships. Additionally, Sorgenia is undergoing a potential ownership change, with the U.S.-based fund Sixth Street considering a 40% stake in the company, which is currently controlled by the F2i group. These factors contributed to the decision to halt the geothermal projects. “We recognize the energy, environmental, and socio-economic benefits of geothermal energy, but current conditions necessitate a strategic shift,” said a Sorgenia representative.
Sorgenia remains committed to renewable energy development, planning to prioritize other sustainable energy projects that align with its economic and operational goals. The company’s decision reflects a pragmatic response to financial and structural challenges, ensuring resources are allocated to initiatives with stronger viability. “Our focus will now be on advancing other renewable energy facilities to support Italy’s clean energy objectives,” the representative added.
The cancellation of the Val di Paglia and Poggio Montone projects marks a shift in Sorgenia’s renewable energy strategy in Tuscany. While the geothermal initiatives held promise for innovation and diversification in Italy’s energy sector, the company’s pivot underscores the importance of economic sustainability in project planning. Sorgenia’s ongoing commitment to renewables ensures continued contributions to Italy’s environmental goals, with a focus on projects better suited to current market and organizational dynamics.
