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.