Cindrigo Holdings Limited announced it has completed the extension of its exploration permit for the Weinheim geothermal project in Germany, extending its validity to 30 November 2028. This extension finalises the acquisition of three licences located in the Upper Rhine Valley, a well-established geothermal production area. These permits, held through Zukunft Geoenergie GmbH, are now fully integrated into the group’s portfolio following the satisfaction of investment agreement conditions.
The London-listed energy group now holds an 85% interest in Zukunft Geoenergie GmbH through its subsidiary CGEO Cindrigo Geothermal Limited. These assets cover a combined area of approximately 125 km² and will be developed in phases to target 300 MW of capacity, including district heating, electricity generation and lithium extraction.
A public programme to accelerate drilling
On 18 December, a new deep geothermal support programme was officially launched by German public development bank KfW Group, in partnership with Munich Re and the Federal Ministry for Economic Affairs and Energy. The scheme provides loans of up to €25mn ($27.5mn) per project, with a maximum term of five years. Cindrigo has stated its intention to apply for this financing for its three geothermal projects.
The programme focuses on two key areas: financial support for drilling at depths of over 400 metres, and risk coverage related to exploration. Munich Re provides insurance after evaluating technical feasibility. In case of loss, the uninsured portion of the loan may benefit from partial debt forgiveness by KfW, allowing project sponsors to secure up to 100% of the loan amount.
Structured mechanisms to mobilise capital
This structure is part of the Deutschlandfonds, a federal fund designed to stimulate private investment in strategic sectors of the German economy. The financing model addresses the inherent uncertainties of geothermal exploration by reducing entry barriers for private developers.
Cindrigo plans to develop its geothermal projects in phases starting in 2026. The company also manages biomass operations in Finland and positions its German assets as key contributors to the national goal of generating 10 terawatt-hours of geothermal energy annually by 2030. This target requires more than 100 new geothermal plants to be commissioned.
Lars Guldstrand, Chief Executive Officer of Cindrigo, stated that “the federal support programme is significant; it greatly supports the drilling while mitigating the risk, and affirms clear end-user demand.”
