The European Investment Bank (EIB) has granted Eavor a €45 million loan to build its first commercial geothermal project near Munich. The project also benefits from a 91.6 million euro grant from the European Union’s Innovation Fund, covering around a third of the total cost. This grant underlines the strategic importance of geothermal energy in Europe’s energy transition
German government commitment
During a visit to the site last August, German Chancellor Olaf Scholz reaffirmed his support for a tenfold increase in the country’s geothermal capacity by 2030. The Eavor plant is intended to serve as a model for wider geothermal development in Germany, providing reliable renewable energy to thousands of homes and businesses.
Closed Loop Technology
Eavor uses a unique closed-loop technology. It involves drilling several kilometers deep, injecting cold water that gradually heats up underground thanks to geothermal heat. The water then rises as steam to power the electricity-generating turbines. This continuous loop operates without a pump, thanks to the thermosiphon phenomenon, creating an autonomous system that constantly recycles hot water.
Differentiation from Traditional Geothermal Projects
Unlike conventional geothermal projects, Eavor’s closed-loop system is designed to avoid heat loss and the risks associated with depleting thermal springs. The technology can be deployed worldwide, regardless of specific geology, enabling the production of basic, controllable renewable energy.
International support
Major investors, including BP, Chevron, Chubu Electric and Microsoft, are actively backing the project. The Canadian government also invested $130 million last October. This mobilization testifies to the confidence in Eavor’s technology to provide clean, safe and affordable energy.
Global Perspectives
Michael Liebreich, founder of BloombergNEF and Chairman of Eavor’s Advisory Board, believes that this technology represents a step closer to the “Holy Grail” of renewable energies. Wopke Hoekstra, European Commissioner for Climate Action, adds that this project illustrates the crucial role that geothermal energy will play in the transition to carbon neutrality.
With this innovative project near Munich, Eavor is demonstrating the potential of closed-loop geothermal technologies to revolutionize clean energy production. Financial and political support testifies to confidence in this technology, which could transform the world’s energy landscape.
