The deployment of an innovative Eavor-Loop geothermal solution in Bavaria was chosen by the independent panel of judges to win the renewable energy trophy at IJGlobal ESG Awards 2024.

The Canadian technology company Eavor’s German subsidiary is using its closed-loop technology (closed system) for the first time on a commercial scale in the town of Geretsried.

In contrast to conventional geothermal energy, the heat in Eavor-Loop does not come from underground water or steam reservoirs. Instead, the company extracts heat directly from deep rock by drilling.

Underground loops are created at depths of 4,500-5000m that resemble a giant underground radiator and are then filled with a geothermal working liquid. As the liquid is heated by the underground rock, it naturally rises to the surface where it can be directly used for district heating and power generation.

The project consists of 4 Eavor-Loops with a maximum thermal capacity of 69.4MWth and power capacity of 10.9MWe.

One of the judges said: “Eavor-Loop technology is new and it’s exciting to see it being deployed for the first time. Geothermal projects are very difficult to execute, so it warrants recognition.”

Another judge pointed to the involvement of the European Innovation Fund – to the tune of €91.6 million – as a noteworthy participant; alongside the EIB’s €45 million loan.

The commercial debt – a green loan for €87 million – was arranged by ING (MLA, hedging bank, agent, security agent and sole sustainability coordinator) along with Mizuho Bank and JBIC. This debt was wrapped by Japan’s export credit agency Nippon Export and Investment Insurance (NEXI).

The project will provide carbon-free electricity and heating for people living in the town of Geretsried and neighbouring municipalities in Bavaria.

It will provide universal access to clean, affordable, reliable and sustainable energy, and geothermal energy is considered to be an environmentally friendly energy source.

The system also emits fewer greenhouse gas (GHG) emissions than conventional geothermal systems because it does not require the extensive use of pumps as heated water in Eavor-Loops will naturally rise to the surface.

The project has also undergone robust environmental and social due diligence. An externally verified environmental and social due diligence report by DNV GL was conducted in 2022, confirming that the estimated emissions over a 10-year timespan of the project is around 450,000 tonnes CO2 equivalent.

Advisers on this transaction include Green Giraffe for financial to the sponsor alongside Watson Farley & Williams on legal. Norton Rose Fulbright advised the lenders.