SPP retains interest in geothermal project

Slovensky plynarensky priemysel (SPP) officially indicated that it intended to drop its project of using geothermal energy in the Kosicka kotlina. This spring it published an advert that it was looking for a company that wished to acquire a majority stake in the company, Geoterm Kosice.

The company was established to commercially develop this geothermal source. But it seems SPP does not want to drop the project completely. It has kept some important cards, such as control over the land where the boreholes are located.

Any company that wants to use geothermal energy needs a ruling issued by the Ministry of Environment defining the exploration area. Geothermal sources were found in the villages of Durkov, Svinica, Bidovce and Olsovany. Not so long ago the area was assigned to Geoterm but from May 9 the area can be explored by Slovgeoterm.

Both companies have the same majority shareholder - SPP. It controls 96% of Geoterm shares and 50% of Slovgeoterm. So far it has only officially announced its intention to sell the Geoterm shares. But as far as the use of the geothermal resource is concerned since May Slovgeoterm has played a key role.

The company focuses on the utilization of geothermal energy. In addition to the project in the Kosice region, it has also participated in a project to heat more than a thousand flats using geothermal water in Galanta and a project to heat greenhouses in Podhajske.

There are also other geothermal projects running in Presov and Michalovce. Icelandic company, Enex, with the same specialisation controls 28% of the company and a further 20% is owned by the investment group, NEFCO based in Helsinki. Two percent of the company is owned by its general director and the general proxy of Geoterm, Otto Halas. And so without the agreement of this company no-one can start any activities related to the utilization of geothermal energy.

[29.7.2008, TREND / Branislav Sobinkovic]