LocationsNelt Group introduces an innovative geothermal system, reducing air pollution and GHG emissions
March 31, 2026
Dobanovci, 31 March 2026 – With the support of the Government of Switzerland and in cooperation with the Ministry of Environmental Protection, within the “EU for Green Agenda in Serbia” initiative, Serbia’s leading distribution and logistics company, Nelt Group, has introduced an innovative system for heating and cooling facilities at its distribution and logistics centre in Dobanovci. The new system uses geothermal and solar energy, which will reduce Nelt Group’s greenhouse gas emissions by 40% by 2030, improve air quality, and increase the company’s overall energy efficiency.
The purchase of the geothermal heat pump system was co‑financed by the Government of Switzerland with a donation of USD 200,000.
“Switzerland supports Serbia’s green transition by encouraging innovation, strengthening the role of the private sector, and developing a sustainable green‑finance system. This project with Nelt clearly demonstrates how innovative solutions can reduce harmful emissions and improve energy efficiency, showing that companies can be both competitive and environmentally responsible at the same time”, said H.E. Anne Lugon‑Moulin, Ambassador of Switzerland to the Republic of Serbia.
The hybrid system with a geothermal water‑to‑water heat pump replaces the previously used gas boiler and provides around 40% of the energy needed for efficient heating and cooling of two warehouse and office halls, as well as the technical block for vehicle servicing with accompanying administrative premises.
“The European Union stands by Serbia on its path to green transition. We support the adoption of cleaner technologies, improved environmental management, and progress towards our shared goal of a greener, more sustainable, and more competitive economy. Nelt’s example demonstrates that renewable energy can replace fossil fuels even in complex logistics operations, contributing simultaneously to environmental and economic objectives”, stated H.E. Andreas von Beckerath, Ambassador and Head of Delegation of European Union to the Republic of Serbia.
Using renewable energy sources for everyday business operations is a concrete step towards decarbonising logistics infrastructure and reducing reliance on fossil fuels. CO₂ emissions are expected to be reduced by more than 50,000 tonnes over a 20-year period, with annual energy savings of around 7 million kWh. Additionally, there will be a significant reduction in pollutants such as sulphur dioxide, nitrogen oxides, and particulate matter, directly contributing to improved air quality.
“Thanks to the successful cooperation of all partners and the advisory team of the European Investment Bank under the EU for Green Agenda initiative, we have supported more than 90 innovative green projects, many of which would not have been possible without this type of assistance. Serbian innovators have received technical support for project preparation, access to favourable financing, and mentorship that helps them grow and reach the market. This demonstrates that a team approach is truly effective: we support Serbia’s green transition by strengthening its innovation ecosystem and entrepreneurial talent”, said Damien Sorrell, Head of the EIB Regional Hub for the Western Balkans.
“UNDP supports the use of geothermal energy, which, as a reliable and accessible renewable source, has great potential for wider application in industry and local governments in Serbia. This can accelerate the green transition and strengthen the country’s energy security. Nelt Group’s innovation is an excellent example of geothermal energy use that other companies in Serbia can follow”, emphasised Yakup Beris, UNDP Serbia Resident Representative.
“Our long‑term commitment is to develop the company responsibly and sustainably, through initiatives that deliver measurable and tangible results. The geothermal system in Dobanovci is a concrete step in the decarbonisation of our logistics infrastructure. The system uses groundwater as a renewable energy source and enables heating and cooling of more than 22,000 m², integrating with the existing energy infrastructure and the solar power plant. At the same time, it has a clear development perspective and will be an integral part of our future logistics capacities through integration with the new warehouse within the centre”, said Marko Cilić, Executive Board President & Acting CEO of Nelt Group.
Nelt Group’s green-transition innovation, financially supported by the Government of Switzerland, is one of more than 90 green investments implemented within the “EU for Green Agenda in Serbia” initiative. This initiative, with technical and financial support of the European Union and in partnership with the Ministry of Environmental Protection, is implemented by UNDP, with additional funding from the Governments of Switzerland, Sweden, and Serbia, in cooperation with the Embassy of Sweden and the European Investment Bank.
