Cindrigo Holdings to acquire 100% of Energy Co-invest Global Corp

LONDON, UK: Cindrigo Holdings has exercised the option agreement to acquire the entire issued share capital of Energy Co-invest Global Corp (ECG).

Energy Co-invest Global Corp (ECG) is an established international energy developer with interests in a broad base of projects within the renewable energy sector, particularly the geothermal energy sector.

The acquisition will give Cindrigo Holdings an immediate position in the geothermal energy sector and a strong platform for future growth, in line with its strategy as a clean baseload power developer.

Lars Guldstrand, Cindrigo CEO, commented “I am thrilled that we have completed the acquisition of ECG, which gives us a solid platform and a basis for further development in the geothermal energy sector.

With pressures on clean energy supplies globally and power prices forecast to remain high, geothermal energy is expected to contribute significantly to increased clean, domestic decarbonised electricity resources as a unique green baseload power”.

“Alongside ECG’s established portfolio, there is a plethora of countries in our sights which have plentiful, yet underdeveloped, geothermal resources and we aim to become a formidable player in this exciting clean energy space, aiming to deliver 1000MW of installed capacity by 2030. The market fundamentals are ripe for major geothermal expansion, which essentially harnesses the earth’s natural heat to create energy, in the race to net zero and the push for national energy security. I am excited for the road ahead”.

Geothermal is classed as ‘Green Energy’ and commands premium power prices due to its decarbonising impacts and clean operations. It is also preferred by governments and grid operators given it provides ‘baseload energy’, providing stable power to the grid, in contrast to fluctuating solar and wind power. Baseload energy is currently in high demand due to the decommissioning of coal plants, nuclear and other baseload power plants and thus, is of critical importance for grid stability. With a yearly global market growth of 5-9%, the market for geothermal power is expected reach US$7-9 billion by 2026.

Cindrigo is focussed on becoming a significant renewable energy provider through its consolidation of European geothermal assets and is focusing on geothermal power plants (operating and in development) firstly in Central Europe and secondly in the European Union (‘EU’) periphery and countries with established commercial and financing ties with the EU. Select non-EU jurisdictions with strong energy sectors are also in review where contract revenue structures suitable for project finance can be confirmed.

Specific geothermal resources having been identified for a first round of projects in Croatia and Hungary, in the Pannonian Basin of Central Europe. This includes opportunities to acquire licence blocks with existing wells that have already been drilled that may be suitable for power generation and where available data indicates that project implementation may be accelerated, and project risks mitigated. ECG has three projects in Croatia, with planned installed capacity of 60MW combined. The Company is aiming to have its first operating geothermal plant by next year. The Acquisition of ECG will bring a short-term debt related to these projects of £1million, maturing on 30 April 2022.

The Company is aiming to have contracts in place for geothermal power plant projects with up to 200 MW of installed capacity within a year, up to 450 MW within three years and 1000 MW by 2030. Its ability to achieve these targets will depend on the raising of the debt and equity finance. The financing for each power plant project will primarily be sought on a project-finance basis at the level of the special purpose vehicle utilised for that project. 

Each proposed geothermal power plant will be of a similar design and with similar operational and financial plans. Clusters of three to five 20 MW plants on one or several project sites will be planned for each project region. It is expected that this will provide economies of scale with efficiencies from centralised equipment purchasing and operational management as well as diversification of resource risk. Potential expansion to 40 MW or more per site may be possible at later stages.

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