Nippon Export and Investment Insurance ( NEXI ) is providing loan insurance to German company Eavor Erdwärme Geretsried GmbH for a geothermal power plant at a mining site in Geretsried, Bavaria.
NEXI’s insurance will cover a €44 million ( US$47.37 million ) loan provided by Mizuho Bank and ING Bank ( Tokyo Branch ). The Japan Bank for International Cooperation ( JBIC ) and European Investment Bank ( EIB ) are also supporting the project.
The project is recognized as the first commercial implementation of a closed-loop geothermal technology called Eavor-Loop, that was developed by Eavor Technologies, a Canadian start-up, in collaboration with Chubu Electric Power. Chubu owns a stake in Eavor and has a direct stake in the Bavaria project, which has a total capacity of 64 megawatts ( thermal ) / 8.2MW ( electric ).
The project will receive a grant from the European Innovation Fund, after it was determined it would provide stable supply of power and heat generated by renewable energies within Europe, through the next-generation technology that significantly reduces greenhouse gas emissions during operation and can be applied even to non-volcanic areas.
It is also aligned with the German Heating Law, which was passed by the German Parliament in January 2024. The law provides that at least 65% of all heating systems, whether for residential or industrial use, must be powered by renewables.