Low Carbon South East Europe

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Good practice examples > Croatia > The Development of Low-Carbon Industries in the Pag Salt Pan
The Development of Low-Carbon Industries in the Pag Salt Pan
January 20, 2015
Name of GP initiative

The Development of Low-Carbon Industries in the Pag Salt Pan

Number of GP initiative  

Croatia/Zadar County

Author/Email Ana Juras/Ana.Juras@mzoip.hr

Ministry of Environmental and Nature Protection

Year of implementation: 2012
Time horizon of initiative/map/etc.: Long term

General description:

A project was implemented on the salt pan on the island of Pag to replace the use of fuel oil as a primary energy source with wood biomass. The project involved a local firm to deliver biomass to boilers, and the wood biomass was obtained from the forestry offices of the public company Croatian Forests.

The salt production season previously lasted a maximum of six months, although with more competitive and less expensive energy generation, this season could be prolonged. The payback period is estimated at three years.

Steps in creating the initiative/roadmap/strategy:

In 2011, due to the high costs of energy, the salt-producing company faced a choice of either investing in a new energy source with a far lower cost, or continuing to struggle for very questionable economic survival. It was decided that it would be worth investing in a less expensive and environmentally friendly energy source to ensure the company’s future prospects. It took less than a year from the initital concept to the development of the investment project for replacing fuel oil with biomass. The new boiler was put into operation in June 2012.

Targets and target determination:


  • Reduction in greenhouse gas emissions from combustion
  • Positive impact on the environment and air quality
  • Use of locally available resources


  • Development of new business and market expansion
  • Fast return on investment


  • Reduction of risks to human health due to less air pollution
  • Redistribution and additional training, and the development of new businesses

Success factors/barriers:

Fuel costs represent approximately 60 to 70 percent of total costs, thus the project will result in significant cost reduction.

The biomass for the boilers comprises waste from the forests, which is obtained from the public company Croatian Forests.

Implementation costs:

HRK 16,500,000 KN

Agrokor d.d.

Economic effects:

Cutting fuel costs will have a positive impact on fund balances, releasing funds for other investments and adding to the competitiveness of salt production in Pag.

This document was developed in the framework of the LOCSEE project.
European Union SEE Regional Policy Network collaboration area (members only) Regional Policy Network