Cindrigo has 85% ownership of three geothermal development projects in Germany: Eich, Worms and Weinheim. The 3 licenses comprise a total area of 125 square km and provide strategic entry into a burgeoning geothermal market.

Renowned geothermal region

The 3 projects are situated in the renowned geothermal region of the Upper Rhine Graben (URG) thrust belt, which is a mature, producing field, with > 400 oil & gas and 24 deep geothermal wells already drilled. Recent discoveries of 200 degrees celsius water (4000 meters deep) at the Graben-Neudorf geothermal project and commissioning of lithium extraction optimisation plant (LEOP) in Landau, 50km southwest of the Worms licence area, has further substantiated high geothermal and lithium prospects of the whole region.

Production

The projects have an estimated combined (heat & power) resource potential of circa 400 MW. Cindrigo intends to develop each project in two phases:

• Phase 1: target capacity of circa. 90 MW (30 MW per project)
• Phase 2: expansion based on technical output, with a combined target installed capacity exceeding 300 MW (includes both geothermal power and heat generation)

Additionally, it is possible for lithium to be extracted from brine water through a separate lithium extraction unit, with a potential extraction of more than 1000 tons after full scale development.

Phased Development

Cindrigo intends to finance development from internal earnings, grants, state funding and/or borrowing as much as possible.

German federal funding is available under the “Bundesförderung für effiziente Wärmenetze” (“BEW”), a subsidy programme for geothermal district heating that covers up to 40% of construction capital expenditure for heat production facilities. The country is also in the process of developing

Transparent Revenues

The German Renewable Energy Sources Act (“EEG”) offers a stable and transparent support scheme for electricity generation using geothermal resources, with a feed-in tariff for geothermal power of 25-euro cents per kilowatt-hour (kWh) during a 20-year term.

Heat tariffs typically range from €45 to €60 per megawatt hour under 10- to 12-year contracts (which may be extended).