Page 97 - SE Outlook Regions 2023

The gasification capacity would be increased by installing an additional
gasification module that would have the capacity of gasification and
natural gas delivery capacity of up to 250,000 cubic metres per hour.

Croatia also took steps to increase the storage capacity of its oil
pipeline operator Janaf to guarantee energy security during the Russian
war in Ukraine. The new storage will cover an area of 640,000 square
metres and will increase the Omisalj terminal’s capacity to 2.04mn
cubic metres, while new storage for refined products will total 220,000
cubic metres of capacity.

Janaf’s transportation capacity was also increased to help Serbia and
Hungary.

In August, the government approved plans to expand the capacity of
the LNG terminal and to build a new gas pipeline. The gas pipeline will
run between the towns of Zlobin and Bosiljevo in northwest Croatia,
with an estimated cost of €155mn.

Zagreb also plans to expand the capacity of the LNG terminal on the
island of Krk to an annual 6.1bn cubic metres from the current 2.6 bcm.

Meanwhile, Croatia is focusing on developing renewable energy
facilities quickly. In October, Croatian electrical equipment producer
Koncar Elektroindustrija said that its engineering unit Koncar
Inzenjering signed a contract worth HRK90mn (€12mn) with electricity
producer Male Hidre for the construction of the Otocac small
hydropower plant (HPP). The plant should improve the power usability
of the river Lika, which feeds the existing HPP at Senj.

In September, Geo Power Zagocha, a company owned by Croatian
entrepreneur Dragan Jurilj, said it will start exploratory works on the
construction of a 20 MW geothermal power plant in the Cadavica
municipality. The plant is projected as the largest of this kind in the EU
with the equipment being supplied by Italian manufacturer Turboden.

The company has already started drilling three wells and has identified
well PS-5 as an early candidate for usage. Exploratory works will
include further drilling, overhauling, and hydrodynamic testing of Well
PS-5 to determine its geothermal resource. The project is estimated to
cost HRK24mn (€3.2mn).

The country is also getting international support for developing
renewable energy facilities. The European Bank for Reconstruction and
Development (EBRD) has agreed to lend €43mn to fund the first
utility-scale renewable project in Croatia to be developed outside a
renewables subsidy scheme. The funds will be used for the
construction of two wind farms that will have a combined total grid
capacity of 111 MW, which is enough to power 85,000 households and
help to avoid more than 78,000 tonnes of CO2 emissions annually. That
would raise Croatia’s current electricity generation from renewable
sources (excluding large hydro) by around 10%.

The loan to Kunovac d.o.o., a limited liability company jointly owned by
Taaleri Energia’s SolarWind II Funds and ENCRO Kunovac d.o.o., will
finance the construction and operation of two onshore wind farms in the

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