The European Investment Bank (EIB) is financing an innovative geothermal heating project, Eavor-LoopTM, in Bavaria, Germany, with a loan close to 45 million euros, Paralel.Az reports.

According to the bank, Eavor, based in Canada, will deploy its closed-loop geothermal technology for the first time at a commercial scale in the Bavarian town of Geretsried. Unlike traditional geothermal methods, Eavor-LoopTM extracts heat directly from underground rocks, bypassing the need for subsurface water or steam reservoirs.

This pioneering project, supported by a 91.6 million euro grant from the EU Innovation Fund, is co-financed by Japan Bank for International Cooperation (JBIC), ING Bank N.V. (ING), and Mizuho Bank, Ltd. (Mizuho), with insurance provided by Japan's Nippon Export and Investment Insurance (NEXI). It qualifies as a green loan under the Loan Market Association’s Green Loan Principles. The combined support from EIB, JBIC, ING, and Mizuho totals 130 million euros, facilitated by financial advisor Green Giraffe Advisory.

Eavor's total investment is projected at 350 million euros. The Eavor-LoopTM will supply heating to households and businesses, with an on-site power station converting geothermal heat to electricity. Initial heat delivery is scheduled for 2026, with gradual increases thereafter. Additionally, Eavor-LoopTM is developing a second project in Hanover, Lower Saxony, Germany, aiming to meet 15-20 percent of the district heating demand.