Article - 14/06/2014

Romanian Geothermal Project Grant Award

A geothermal district heating project that Mannvit will work on in the city of Timisoara in Romania has received an EEA Grant. The project is one of four projects that were awarded a grant from the EEA Grant fund based on the RONDINE program. Estimated cost of the project is 1.8 billion ISK, whereas the grant is a total of 600 million ISK (€3.9 million). Annual production capacity of the heating system will be roughly 40,8 GWh. Activities to prepare for drilling will start in September 2014, drilling is to be completed by mid-year 2015 and operation of DH system is due to commence in 2016. The project is operated by Mannvit and Sifee Terra Heat from Romania in collaboration with Timisoara municipality and Colterm, the city‘s utility company. Isor from Iceland is also a part of the project as subcontractor.

 

 “This is immensely positive for us and an important step in relation to the various geothermal projects we are working on in Central Europe. We will go directly into the project preparation and expect to start construction in the fourth quarter of this year.” said Eyjólfur Árni Rafnsson, Managing Director of Mannvit in an interview with Icelandic newspaper Frettabladid.

 

Reducing Emissions

The project is for the drilling of a production and injection well and to use the geothermal water for Timisoara’s district heating system, Romania’s third largest city. The city’s utility operates two power plants but the project aims at replacing some of the coal and gas heating with geothermal energy. Average energy need during the winter months is 174-227 MWth. The new geothermal DH systems will increase the use of geothermal energy for heating in Romania by 30% and reduce CO2 emissions by 13000 tons annually. The other project awarded a grant is in the city of Oradea.

 

RONDINE Award Program

The grant is awarded by the RO06 Renewable Energy Programme (RONDINE), under the EEA Grants 2009-2014 that aims at the sustainable use of natural resources and reducing emissions of greenhouse gases through the use of renewable energy. The Environment Fund Administration is the designated Programme Operator and has as main objective the implementation and financing of several types of programmes for sustainable development of Romania that will contribute to improve environmental infrastructure. Iceland’s Energy Authority has participated in the development of the EEA Grant scheme since 2010. In 2012, Iceland’s Energy Authority began collaboration with the Norwegian Water Resources and Energy Directorate and a Romanian Environment- and Energy Fund (AFM) that together forms the Directorate of the RONDINE Energy Programme.