The European Investment Bank (EIB) has provided a loan to Eavor Technologies to support the commercial-scale geothermal heating project in the German state of Bavaria.
Eavor will implement its closed-loop technology, Eavor-Loop, for the first time at commercial scale in the Bavarian town of Geretsried with the help of EIB’s loan of close to €45mn. The loan comes with a guarantee by the European InvestEU programme.
The project is co-financed by Japan Bank for International Cooperation, ING Bank N.V., and Mizuho Bank Ltd, and is insured by Japan’s Export Credit Agency, Nippon Export and Investment Insurance. It qualifies as a green loan in accordance with the Loan Market Association’s Green Loan principals. The combined support amounts to €130mn. The project is also being developed with the additional support of a €91.6mn grant from the EU Innovation Fund.
The Eavor-Loop will provide heating to households and businesses in Geretsried. In addition, an on-site power station will convert the geothermal heat into electricity. Eavor intends to start heat delivery by 2026, and the Eavor-Loop has started developing a second project in Germany to supply 15-20% of the demand of district heating in Hanover.
Nicola Beer, EIB Vice President, said, “The Eavor-Loop supports the transition to a carbon-neutral energy system in Germany and helps the country to get independent form fossil fuels, while adding to energy security for the people and businesses.”
Commissioner for Climate Action, Wopke Hoekstra, commented, “Once again, we see how valuable the work of the Innovation Fund is through the funding it provides for cutting edge projects that lower emissions. Today, thanks to €45mn investment by the European Investment Bank and €91.6mn from the Innovation Fund, we are supporting the innovative geothermal technology Eavor-Loop in Bavaria, Germany.”
Daniel Molk, Executive Vice President Europe Operations, concluded, “We are impressed and honoured that, after the EU Innovation Fund, the European Investment Bank is now also co-financing our project in Geretsried. Europe has recognised that the Eavor Loop is a scalable key technology for achieving climate neutrality and significantly more energy security on this continent."
