ZAGREB, February 20, 2018 - A Norwegian investor plans to invest 18.7 million euro in a biomass-fuelled power and heating plant in the business zone in the municipality of Žakanje, about 60 kilometres southwest of Zagreb.
A presentation of the planned investment was held on Tuesday in the Karlovac County offices and the presentation was prepared by Croatia REN AS, a Norwegian company founded in 2012 by the Green Energy Innovation Alliance.
REN AS owns two Croatian project companies -- Maksim Trade Energija and Bio Peleti Energija -- which were developed in the Žakanje business zone.
The investment includes the construction of two plants on an area of 23,000 square metres, one for the production of biomass pellets and another for the production of heating and electricity power and is supposed to employ 30 workers. The construction is set to start in the spring.
The construction of a co-generation power and heating plant with a power of 1 MW is planned and is expected to be up and running by the summer of 2019. Based on an agreement with the Croatian energy market operator HROTE, REN AS will supply electricity to the public power grid for a period of 14 years. Part of the heat produced will be distributed to public institutions in and around Žakanje.
In addition to the capital being invested by the Norwegians, the project is being financed by the Privredna Banka Zagreb and the Croatian Bank for Reconstruction and Development (HBOR). The Ministry of Agriculture has approved a subsidy of 7.5 million kuna for the Žakanje project.
