Canadian BD Geothermal Energy builds 50-70m EUR worth of geothermal power plant in Vranjska spa

- Canadian company BD Geothermal Energy plans to open a geothermal power plant in Vranjska spa, in which between 50 and 70m EUR will be invested - local self-government in Vranje announced today (February 16, 2010).

The CEO of public company Uprava Banje (Spa Administration), Nebojša Stojanović, told Beta agency that the City of Vranje and Uprava Banje had signed the Memorandum of Cooperation with the Canadian company on February 12th. According to that document, drilling works in Vranjska spa should start in March.

He said that the Canadian company planned to make about 20 new borings in Vranjska spa in search for hot water. Each new boring costs 0.5m EUR.

- The completion of geothermal researches will be followed by construction of geothermal power plant of 25 MW, which will be the first power plant of the kind in the Balkans and this part of Europe - said Stojanović.

According to his words, about 70m EUR worth of investments in the power plant are expected within the next four years.

Stojanović said that the project was expected to create jobs for 200 people. That is only the beginning of recovery of the economy in the region of Vranje since the arrival of other investors is expected as well.

Canadian Tender Group, of which representative in Serbia is BD Geothermal Energy, got the permit to research and promised to pay the fee for use of the land where borings with hot water are situated.