Eavor removes drilling rigs as Geretsried geothermal project stalls

Canadian energy company Eavor is removing both drilling rigs from its geothermal project in Geretsried, Bavaria, and has postponed construction of a second loop indefinitely, BR reports. The company cited the high costs of keeping the rigs and related services in place while they are not being used.

The delay leaves the town unable to plan reliably for the start or expansion of district heating from the project. Geretsried said it was disappointed to have been informed at short notice. The town and Isar Loisach Naturwärme GmbH are reassessing the project’s performance and commercial viability under the changed conditions, and the town is considering alternative or additional sources of heat.

A heat supply contract between Geretsried and Eavor has been in place since 2024, but district heating has not yet begun. Without a firm timetable for the second loop, the town cannot set a dependable schedule for the service.

Technical problems delayed the first loop

Eavor’s closed-loop system circulates water through pipes deep in hot rock, where it absorbs heat for electricity and district heating. The technology is intended to make geothermal energy usable in places without naturally occurring thermal water.

Construction of the first loop encountered technical problems. Eavor said the two vertical main wells were not cemented sufficiently, allowing fluid and drilling debris to enter horizontal sections that had already been drilled. The company had to complete the work sequentially rather than in parallel, adding time and cost.

Twelve pairs of horizontal wells were originally planned. Six were completed, with four fully finished. The plant first supplied electricity to the public grid in December 2025. Eavor said its electrical output most recently stood at about 8.5 megawatts.

EU funding implications remain unclear

The European Innovation Fund approved a grant of 91.6 million euros for the project. Financing through a European Investment Bank loan of up to 45 million euros was also announced.

It is not yet clear how the delay will affect the funding. The amount of the grant already paid out, the terms and deadlines attached to it, and whether any disbursed funds might have to be repaid remain unknown. BR said it had asked the EU Innovation Fund for comment but had not received a response.

Eavor continues to describe Geretsried as a flagship project, with experience there intended to inform future plants. The project was presented as a potential breakthrough for geothermal energy when then-Chancellor Olaf Scholz and Bavarian Minister-President Markus Söder visited the construction site in 2023.