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ENNA Geo completes purchase of Star Energy's Croatian geothermal assets

ENNA Geo completes purchase of Star Energy's Croatian geothermal assets

Money Moves

Croatian energy group consolidates three exploration licences as UK firm exits over tariff delays

Today: ENNA Geo completes IGeoPen acquisition

Overview

Updated 1 hour ago

A UK energy company has exited Croatia's geothermal sector, selling its three exploration licences to a domestic rival. Star Energy Group completed the sale of its Croatian subsidiary IGeoPen to Enna Geo on October 14, ending a three-year push into the country.

The sale is a bet on policy timing. Star Energy cited the Croatian government's failure to set a premium price tariff for geothermal electricity as the reason for leaving. Enna Geo, already developing two larger geothermal plants, is betting the policy will arrive before its projects need it.

Why it matters

Croatia's geothermal potential is among Europe's best, but without a premium tariff, none of it gets built — this sale shows who's willing to wait.

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Key Indicators

€1.5M
Initial cash consideration
Star Energy's share is €1.3 million; the rest goes to joint venture partner Peninsula.
3
Exploration licences acquired
Ernestinovo, Sječe, and Pčelić in eastern Croatia.
€5.2M
Restricted cash released
Freed for Star Energy by the sale, used to repay debt.
211°C
Peak temperature at Zagocha well
Measured at 4,582 meters depth in 2025, among Europe's hottest geothermal wells.

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Timeline

2023 October 2026

5 events Latest: Today
Tap a bar to jump to that date
  1. ENNA Geo completes IGeoPen acquisition

    Today Corporate

    Full ownership of three geothermal exploration areas transfers to Enna Geo; Star Energy receives €1.3 million.

  2. ENNA Geo confirms acquisition

    Corporate

    ENNA Group announces it will take over three geothermal exploration licences from IGeoPen.

  3. Star Energy announces sale of IGeoPen

    Corporate

    Agreement signed to sell the Croatian subsidiary to Enna Geo for €1.5 million plus earn-outs.

  4. Star Energy enters Croatian geothermal market

    Market Entry

    Star Energy acquires a stake in IGeoPen, gaining the Ernestinovo exploration licence.

  5. Star Energy wins two more exploration permits

    Regulatory

    State tender awards IGeoPen exploration rights at Pčelić and Sječe.

Scenarios

1

Croatia adopts premium geothermal tariff

Uncertain Resolves by End of 2027

Discussed by: Star Energy's exit statement, ENNA Geo

The core blocker. Star Energy cited the delay in the Croatian government's announcement of an incentive purchase price for geothermal as the reason for selling. If the government sets a premium tariff, development on the three licences becomes viable and Enna Geo's bet pays off.

2

ENNA Geo brings Zagocha online by 2030

Possible Resolves by End of 2030

Discussed by: ENNA Geo project announcements

ENNA Geo's flagship project, a 20 MWe plant near Slatina, is the most advanced geothermal project in Croatia. Target operational date is 2030. If it comes online, it validates the company's bet on the sector.

3

Earn-out paid on at least one licence

Unlikely Resolves by End of 2032

Discussed by: Star Energy sale terms

Star Energy keeps a €0.5 million earn-out per licence, payable when a geothermal power plant reaches commercial operation on each of the three licences. If Enna Geo develops any of them, Star Energy gets paid.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

July 2013

Spain's solar subsidy reversal (2013)

Spain retroactively cut feed-in tariffs for solar power after a boom that had drawn heavy investment. The government said the subsidies were unaffordable.

Then

Solar investment collapsed and several developers sued the state.

Now

Spain's renewable build-out stalled for years and investor trust in the market was damaged.

Why this matters now

Shows how a government's subsidy policy can freeze or reverse renewable investment — the same dynamic Star Energy cited in Croatia.

2015

UK onshore wind subsidy phase-out (2015)

The UK government ended subsidies for new onshore wind farms, halting new projects for years. Developers shifted to offshore wind instead.

Then

Onshore wind planning applications dried up.

Now

The UK's onshore wind capacity stagnated for years until the policy was reversed.

Why this matters now

A policy change can stall an entire technology's deployment — the risk Enna Geo is taking on in Croatia.

Sources

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