Ljubljana related
STA, 2 April 2019 - The Slovenian provider of energy and sustainable solutions Resalta will get an EUR 6m capital injection from the European Investment Fund (EIF) and private investors. The resources will help the company make a transition from a start-up to a major international energy provider.
Resalta and the EIF, whose main shareholder is the European Investment Bank (EIB), signed the investment agreement on Tuesday, striving to further develop the company's independent energy services and renewable energy solutions, thus investing into a positive impact on Slovenia and the EU's economy as well as on the environment.
The investment will be guaranteed by the European Fund for Strategic Investments (EFSI), the key part of the Investment Plan for Europe, also known as the Juncker Plan.
Half of the recapitalisation amount will be provided by a joint instrument of the EIF and the Slovenian Development Bank (SID), with the other half provided by the Bulgarian BlackPeak Capital investment fund and private investors.
Resalta was established by three Slovenian major companies - home appliances maker Gorenje, gas wholesaler Geoplin, and the capital's public utility company Energetika Ljubljana - and is present in eight markets, including Slovenia, Bulgaria, Croatia, the Czech Republic, Italy, North Macedonia, Montenegro, and Serbia, doing business with individual clients, companies, and municipalities.
The company endeavours to assist its clients in reducing carbon emissions and energy consumption, saving on energy-related costs.
The EIF pointed out that the company has developed and implemented solutions that saved 300GWH of electric energy, thus reducing carbon emissions by 30,000 tons per year, which is equal to planting 3,400 hectares of forest.
Contributing to the City of Ljubljana's project, Resalta also reduced carbon emissions in a number of the municipality's facilities and was given the European Energy Service Award by the European Commission for this achievement.
The company's CEO Luka Komazec said that the investment was an important stepping stone to Resalta's development, helping them develop new energy service projects and transforming the region into a more eco-friendly environment.
STA, 12 March 2019 - The UK-based company Ascent Resources has announced it will appeal against the Slovenian Environment Agency's decision that it will have to seek an environmental impact assessment (EIA) for its gas extraction project in the far north-east of the country.
"The partners plan to appeal the decision within the prescribed 15-day period," the UK company has said as quoted by Your Oil and Gas News portal.
The key ground for appeal will be that all six expert government agencies which the agency is required to consult as part of the screening assessment process concluded that no EIA should be required on the basis that the project to re-stimulate two currently producing wells was not likely to have significant effects on the environment.
The Slovenian Environment Agency (ARSO) failed to follow the findings even though bound to so, having not undertaken any independent assessment of the likely impacts of the environment, Ascent Resources said in the post.
Ascent Resources has been extracting and selling untreated natural gas from the Petišovci field in cooperation with its Slovenian partner Geoenergo, but the partners have been unable to get permits for hydraulic fracturing and for a new gas processing plant due to repeated appeals by environmentalists.
The company said that the partners had applied for the screening assessment in May 2017, so they also plan to challenge ARSO's latest decision for not being issued within the two-month period prescribed by Slovenian law. "The failure to comply with other provisions of Slovenian law as well as breaches of EU law will be detailed in the appeal."
Related: Ascent Resources CEO - Company May Sue Slovenian Government Over Fracking Permits (Video Interview)
Meanwhile, Ascent Resources welcomed ARSO acknowledging that the proposed project cannot be regarded as "fracking" as defined by the European Commission in its recommendation in 2014.
Ascent Resources has been working with legal experts in Slovenia and London to prepare claims for damages as "a result of the numerous and continued failures and delays by ARSO and the ministry to comply with Slovenian and EU law".
It said that "any potential claim for damages will take into account the amount invested by Ascent in the project, currently in excess of EUR 50m, and future expected profits from the development of the field which is estimated to be a multiple of the existing investment".
Related: PM Surprised By Hunt Lobbying for UK Fracking Company: “In Slovenia We Operate in Line with the Law”
PM Surprised By Hunt Lobbying for UK Fracking Company: “In Slovenia We Operate in Line with the Law”
STA, 8 March 2019 - Prime Minister Marjan Šarec told the weekly Mladina that UK Foreign Secretary Jeremy Hunt had raised the issue of a UK company's gas extraction project in the north-east of Slovenia during their talks in Ljubljana at the end of February. Šarec said he found the manner of inquiry unusual.
The fracking attempts in the Petišovci area were stopped by former Environment Minister Jure Leben after UK company Ascent Resources had been pressuring the country to issue an environmental permit and even threatening with a lawsuit before an EU court.
Several environmental NGOs and parties had also accused UK Ambassador Sophie Honey of lobbying and putting pressure on Slovenian authorities to secure the permit for fracking.
Šarec said in an interview with Mladina that the case had come up in the talks with Hunt in Ljubljana on 21 February.
Asked whether Hunt had lobbied during the talks, Šarec replied in the affirmative. "Yes, his questions regarding this case were, I must say, unusual.
"I believe that such talks do not become a foreign secretary, because it makes the whole thing resemble horse-trading."
Šarec said he had told Hunt that "in Slovenia we operate in line with the law."
"I'd like to point out that the permit for fracking is not a matter of a favourable political stance toward this or other party but a matter of legislation.
"I am also personally convinced that these procedures for extracting oil or gas undoubtedly entail certain environmental risks."
Šarec also noted that lobbying was usually reported to the Commission for Corruption Prevention but it this case this was not necessary, because he had publicly spoken about it now.
All our stories about fracking in Slovenia can be found here, while all our stories about Jeremy Hunt are here
Ascent Resources’ quest to gain the permits needed to develop its Petišovci gas field continues, reports the investment website Morning Star, with the threat of legal action against Slovenia if the delays continue. The company requires one permit to install a gas processing facility, while another is needed to re-stimulate wells to increase their production, a process commonly known as fracking.
CEO Colin Hutchinson was quoted on Monday as follows: "While the pace of progress in Slovenia remains frustratingly slow, as we continue to follow the process and provide those responsible for making the permitting decision with all of the information they require, based on the unarguable benefits for the country I remain hopeful the permits will be awarded in due course."
Some of the messages sent in support of Ascent Resources. Screenshot from RTV Slovenia
The project has been in the news in recent months because of the environmental concerns it raises, but also because of a number of harassing messages that were sent to government officials in Slovenia, including the Minister of Environment. While the author(s) of the messages have not been identified, all expressed support for Ascent Resources.
Although new developments are stalled production at the site is continuing, and the website notes that in January the firm was able to extract 412,763 cubic metres of gas, for expected revenues of about €70,000, down slightly from the figures seen in December.
Ascent Resources is a penny stock, currently trading at 0.28p, or £0.0028
Ascent Resources, the UK-based firm engaged in a long-running attempt to begin fracking at Petišovci, a plan that has been delayed due to a lack of permits, said on Monday that it’s now looking to develop other projects outside Slovenia.
A report published on the London South East website, sets out how the company is still waiting on permits to re-stimulate it’s existing wells to produce more gas from the field, and install a processing facility to enable the natural gas it produces to enter the Slovenian national grid.
The story became more heated in late 2018, with accusations that Ascent Resources shareholders, or other interested parties, had been sending threatening messages to the Slovenian Environment Agency, as reported here, as well as threats by the company to sue the Slovene government for damages.
The firm’s Chief Executive, Colin Hutchinson, is quoted as saying "While the Petišovci project remains a potentially very valuable asset, I am pleased that we now have a way forward that is not entirely based on Slovenia and the award of permits.”
At the time of writing the shares of Ascent Resources (AST) were trading at 0.32 pence in London, down from 1.40 pence a year ago.
STA, 13 December 2018 - Following a longer period of stable prices, several power and natural gas companies in Slovenia increased their prices this autumn in response to growing energy prices on foreign energy exchanges.
Wholesale energy prices on foreign markets have been growing for a while due to the economic and political situation and increasingly expensive CO2 emission coupons.
Monitoring energy prices in Slovenia, the Consumers' Association (ZPS) said some half a dozen companies had increased electricity prices and a dozen of them increased natural gas prices.
The uniform electricity tariff rose by an average 15%, the higher tariff by 12% and the lower one by more than 17%, according to the consumer watchdog.
The prices of natural gas for end-users have increased somewhat less, by an average 10%, ZPS data shows.
The electricity bill for households receiving power from Elektro Primorska's subsidiary E3 has been higher by an average EUR 2.50 or 4.9% since September.
E3, which said the Slovenian electricity market had been "very dynamic" since mid-2017, previously increased the electricity price a year ago, while it sets it on an individual basis for large business customers.
Prices depend on neighbouring countries
The company told the STA that electricity prices in Slovenia were largely under the influence of price trends in the neighbouring countries.
The price of electricity on the Hungarian HUPX power exchange rose by slightly less than 30% in the January-October period, peaking at EUR 64.30 per megawatt hour in September, "which was also a record value in the last ten years", it said.
Elektro Maribor's Energija Plus increased its electricity prices in October, by an average 5.9% for business customers and by 6.6% for households.
The distributor said that since September 2017, the price of megawatt hour of electricity on the European EEX energy exchange to be supplied in 2019 and 2020 had grown from EUR 30 to EUR 60. "This year alone, it rose by more than 45%."
While Gen-I is not planning a rise for households, RWE has not yet taken the final decision, but said electricity prices had been constantly rising across Europe over the past 18 months.
CO2 measures drive much of the increase in price
The company told the STA the prices on the German energy exchange had doubled to reach the highest level in five years, adding the main reason behind the trend was the changed rules governing trading in CO2 emission certificates.
As for natural gas, Energija Plus said the prices had been rising since September 2017, with a megawatt hour of natural gas for supply in 2019 rising from EUR 17 to more than EUR 24 over the past year.
Petrol and diesel prices in Slovenia have also been affected by prices on foreign markets, with administered prices of regular petrol and diesel reaching in October the highest level since June 2015 and November 2014, respectively.
The same month, diesel was more expensive than regular. However, since then, the prices have been dropping to reach the levels from the beginning of the year.
Meanwhile, a litre of heating oil has risen to reach an average EUR 0.965 in the third quarter of the year, up from an average EUR 0.768 in the same quarter in 2017.
STA, 13 December 2018 - Natural gas will be a major part of energy supply in Slovenia in the future and domestic production would greatly increase the reliability of supply, heard participants of a Thursday's event dedicated to energy.
Noting that natural gas plays a generally positive role in the EU's energy transition to meet climate goals, Jurij Vertačnik of the Ministry of Infrastructure said that establishing competitive domestic production would be positive for the country, which currently relies almost exclusively on gas imports.
It is however true that the required infrastructure will have to be adapted for other energy sources in the future, which entails certain technical as well as regulatory challenges, he acknowledged.
Petišovci gas well a missed opportunity
There is a gas well at the Petišovci field in the north-east of the country, but its potential is not utilised, said Miha Valentinčič, the head of Geoenergo, the Slovenian partner of UK's Ascent Resources which is exploring the gas field.
According to him, there has been a lot of intentional deception with regards to the project since 2011 that has slowed down the project.
"We're trying to conclude as soon as possible the procedures that are under way, including obtaining the necessary permits to maintain current production and to connect to the Slovenian network," he said.
Part of the gas pumped out at the Petišovci field is sold to local industrial partners and the rest to Croatian energy company INA, which built a connection to the nearby Zebanec gas field last year.
Related: Slovenia's Environment vs British Capital, Corrupt Officials and Internet Trolls
The UK firm has been trying to get the permits for some time now and has been in conflict with the Slovenian authorities because of a review of the procedure to obtain the permit to use hydraulic stimulation at the Petišovci field.
According to Miloš Markič of the Geological Survey, low-volume and high-volume fracturing should be distinguished, with the former allowed in most countries and the latter prohibited in Europe due to the population density.
STA, 12 November 2018 - Joško Knez, the director general of the Environment Agency (ARSO), stepped down on Monday, over an internal review of procedures for granting environmental permits for a controversial Ascent Resources gas extraction project in the far north-east of the country.
According to a report by the news portal Siol, Knez has resigned because irregularities were uncovered in the review ordered by the new Environment Minister Jure Leben last month.
Leben ordered the oversight of procedures for extracting gas in the Petišovci area by the UK's Ascent Resources and its Slovenian partner Geoenergo. The latter is owned by energy companies Petrol and Nafta Lendava, which are in majority ownership of the state.
According to a recent report by investment research firm Morningstar, Ascent Resources had received "repeated" private assurances from senior government officials, especially at the Environment Agency, that it would be getting the permit soon.
Apparently the review struck a nerve and the UK-based company launched an offensive against Slovenia, and Leben in particular.
At the end of October, Ascent Resources said it was mulling taking Slovenia to "EU courts" over the delay, while the minister has had to face an onslaught from shareholders and the management of the UK company.
Ascent Resources director and shareholder Colin Hutchinson tweeted that the company "invested EUR 50m in the project to date and will not walk away. The permitting system in the country is in need of urgent reform and foreign investors should be very wary of investing until this happens".
However, the Environment Ministry said today that "today's report corroborates that the minister's suspicions have been warranted", as the principles of independence and autonomy of ARSO were violated in the two procedures.
Moreover, the report says that "persons from abroad apparently do not find unacceptable and contentious putting pressure on Slovenian officials and are willing to repeat them".
The findings of the review will be forwarded to the relevant authorities, including "all the efforts to put pressure on the ministry during the review".
Just today, three non-parliamentary parties and several environmental NGOs urged Foreign Minister Miro Cerar to summon UK Ambassador Sophie Honey over lobbying for the UK company.
The Pirates, Solidarity, and the United Left and Workers' Labour Party (ZL-DSD) alliance, accuse Honey of lobbying and putting pressure on Slovenian authorities to secure the environmental permit for fracking in the Petišovci area.
Ascent Resources claims it would use hydraulic stimulation and not fracking to extract gas in Petišovci. This was corroborated by Geoenergo, which said that the method used in Slovenia would differ from fracking as used in the US significantly.
The procedure, "cannot and must not be equalised with the hydraulic treatment or fracturing of shale ... There are significant differences between the procedures in Slovenia and those in the US ... that basically stem from the difference in the geological profile of the rock".
But the environmental alliance is unconvinced. "We're witnessing a reality show where multinationals are treating us as natives from the most underdeveloped countries and heaping alternative truths on us in line with the worst case of fake news," environmental activist Gorazd Marinček told the press today.
STA, 23 August 2018 - In a bid to make Slovenia's energy sector more efficient, the emerging government coalition will promote renewable sources of energy, chiefly water energy on the Sava river. Its environmental policy will, meanwhile, seek to keep Slovenia green but also attractive to sustainable investors. A green tax reform is also planned.
The gas will meet about 5% of Slovenia's energy demand.
