The Slatina 3 geothermal drilling project in Croatia has been abandoned following the bankruptcy of EES Dravacel, the company holding the exploration license. The project, backed by British firm Cindrigo, collapsed despite an investment of around 4 million euros, due to a lack of a viable business plan and financial instability.
Verko Kutleša, the bankruptcy trustee, explained that proceedings were initiated after employees went unpaid for three consecutive months. Under Croatian labor laws, such circumstances allowed workers to trigger legal action. Kutleša expressed disappointment that a project with substantial investment and potential benefits failed due to inadequate financial planning and lack of a backup funding strategy.
During the project’s lifespan, Cindrigo repeatedly sought extensions on its exploration license from the Hydrocarbon Agency. However, the company was unable to secure sufficient funds to pay Crosco, the firm responsible for geological testing necessary to determine the well’s flow rate and commercial potential. Although the Ministry of Economy granted an initial extension, a second request was denied, leading to the eventual revocation of the license.
Kutleša criticized the government’s lack of flexibility, arguing that the potential of the project — including renewable energy generation and agricultural heating applications — warranted a more supportive approach. He also pointed to bureaucratic inconsistencies and the absence of standardized procedures in the state administration as factors that hinder investment in the sector.
One additional complication is a contractual clause requiring the license holder to return the site to its original condition. This includes demolishing already-installed infrastructure, such as the drilling platform, which Kutleša described as wasteful, since any future investor would have to rebuild it.
Despite the setback, there is ongoing interest in the site. Kutleša revealed that talks are underway with potential investors from France and Iceland, both of whom are reportedly ready to resume development at Slatina 3. He remains optimistic that a new investor could quickly revive what he describes as a highly promising and potentially profitable geothermal venture.
