Cindrigo Holdings Ltd (LSE:CINH) said it will acquire Energy Co-Invest Global Corp (ECG), which specialises in developing geothermal energy, to expand into the renewable energy sector.
With yearly market growth of 5%-9%, the geothermal market is expected to reach US$7bn-US$9bn by 2026.
“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," Lars Guldstrand, Cindrigo chief executive, said.
ECG has three active projects in Croatia – all of which are geothermal licence blocks, Cindrigo said.
The renewable energy company said it will expand further into Central Europe, primarily in Hungary and Croatia, in the future.
“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,” Guldstrand added.