$5 million contract signed for drilling of second well in Kolo geothermal project

A contract for the drilling of Kolo GT-2, the second well in the Kolo geothermal project in Poland, has been signed between Miejski Zaklad Energetyki Cieplnej (MZEC) and Exalo Drilling SA. The 21.7 million-PLN (USD 5.4 million) contract was awarded to Exalo Drilling following an open tender.

Aside from the drilling work, the contract also includes conducting a series of hydrogeological, geophysical, and laboratory during and after drilling. These activities are planned to last 315 days.

The first well, Kolo GT-1, was drilled in 2021 as we reported. The cost of the first well was over PLN 23 million, of which more than PLN 22 million was subsidized by the National Fund for Environmental Protection and Water Management.

The rest of the project – which includes the construction of a heating plant and pipeline – is estimated to cost PLN 37.2 million. MZEC has signed an agreement with the National Fund for Environmental Protection and Water Management for a co-financing amount of PLN 15 million. The rest of the cost will be funded by loans and the company’s own funds.

“The signing of the contract for the drilling of the second Kolo GT-2 well, which will serve as part of the geothermal doublet, is the crowning achievement of our many years of efforts to launch the Kola geothermal energy.” commented MZEC President Przemysław Stasiak.

No contractor has been selected yet for the construction of the geothermal heating plant. This will also be selected via an open tender.

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