Eavor pulls drilling rigs from stalled Geretsried geothermal project

Canadian energy company Eavor is removing both drilling rigs from its geothermal project in Geretsried, and work on a second underground loop has been postponed indefinitely, BR reports. The company says the cost of keeping the rigs and related services in place while they are not being used is behind the decision.

The town of Geretsried said it was disappointed and told BR24 that it and Isar Loisach Naturwärme GmbH had been informed of the delay at short notice. The change means the project’s capacity and financial viability must be reassessed, despite a heat supply contract with Eavor signed in 2024.

Without a firm timetable for the second loop, the town cannot reliably plan when district heating will begin or how widely it can be expanded. It is also examining alternative or supplementary ways to generate heat.

The Eavor Loop is designed to produce geothermal energy in places without natural thermal water. Water circulates through a closed pipe system deep in hot rock, absorbing heat intended for use in electricity generation and district heating.

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

Twelve pairs of horizontal wells were initially planned. Six were completed, with four finished in full. The facility first fed electricity into the public grid in December 2025. Eavor said its electrical output was most recently about 8.5 megawatts. District heating has not yet begun.

The project has been awarded a 91.6 million euro grant from the European Innovation Fund. Financing through a European Investment Bank loan of up to 45 million euros was also announced. The effect of the delay on this funding is not yet clear, including how much of the grant has been paid and whether any conditions or deadlines could require money to be repaid. BR said it had asked the EU fund for information but had not received a response at the time of publication.

Eavor continues to describe Geretsried as a flagship project, with experience there intended to inform future facilities. The project was presented as a potential breakthrough when then Chancellor Olaf Scholz and Bavarian Minister-President Markus Söder visited the construction site in August 2023. The removal of the rigs and the indefinite delay to the second loop mean that promise remains unfulfilled for now.