Mizuho Bank, Ltd
Mizuho Bank, Ltd. (President & CEO: Masahiko Kato) has arranged a project finance deal to build, maintain, and operate the Geretsried Project (the "Project"), the world's first commercial scale closed-loop geothermal power and district heating project in Germany, jointly financed by Mizuho Bank, another commercial bank, Japan Bank for International Cooperation ("JBIC") and the European Investment Bank as Mandated Lead Arrangers with Nippon Export and Investment Insurance ("NEXI") as the insurer.
The Project is developed by Eavor Erdwärme Geretsried GmbH, the Special Purpose Company (SPC) formed by Eavor Technologies Inc. ("Eavor") and Chubu Electric Power Co., Inc. ("Chubu"). The Project will drill closed-loops approximately 4,500-5,000m underground and by circulating water inside, underground heat will be efficiently extracted for both power generation and district heat supply above ground. Full operation is expected to start in 2026.
The Project is the world's first commercial scale project with closed-loop geothermal technology using Eavor-Loop™, recognized as an innovative technology to achieve carbon neutrality and will receive 91.6 million euro grant from the EU Innovation Fund ("Fund"). Along with the substantial reduction of greenhouse gas emissions during operation, the Fund also recognized the significant contribution of this Project to supply stable power and heat from renewable energy within Europe. This is made possible by its innovative technology which can be installed outside the volcanic regions.
The global geothermal power market has doubled in installed capacity over the two decades from 2000 to 2020 and it continues to increase. Particularly in Japan which ranks third in geothermal resource in the world, further utilization of geothermal power is considered a key effort towards decarbonization. As of the end of 2020, the world's geothermal power capacity stands at approximately 15.5 GW which is still in a stage of development and this Project will contribute to future market growth as a pioneer.
We at Mizuho will utilize our extensive power industry know-how and our track record in the field of project finance to support technological innovation and the development of renewable energy around the world, thus promoting action to address climate change and supporting the transition to a low-carbon society.
<Overview>
| Project Name | Geretsried Geothermal Project |
| Project Company | Eavor Erdwärme Geretsried GmbH（SPC invested by Eavor and Chubu） |
| Project Description | Build, maintain and operate a geothermal power generation and district heating project located in Bavaria, Germany |
| Mandated Lead Arrangers / Lenders | Mizuho Bank, Japan Bank for International Cooperation, European Investment Bank, ING Bank, Nippon Export and Investment Insurance (insurer) |
| Agreement date | April 26, 2024 |
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| <Location> | <Image> |
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（Source：Chubu's Press Release dated on 30/4/2024）