North Rhine-Westphalia, Germany expands funding support for geothermal
V.l.n.r.: Mitarbeiter GTN, Mona Neubaur
The funding package for geothermal projects in North Rhine-Westphalia, Germany, now providing risk coverage and subsidies for exploration drilling.
A new funding package in the State of North Rhine-Westphalia (NRW) in Germany has been announced to support geothermal projects. The funding will subsidize exploration drilling while also hedging the discovery risk for production wells.
The new funding package was announced by Mona Nuebaur, Minister of Economic Affairs and Climate Protection, during a visit to the drilling site of a geothermal research well in Krefeld. The drilling in Krefeld started on 19 March 2025 and is estimated to last two months.
This also marks the anniversary of the presentation of the “Geothermal Master Plan NRW,” with which the state has set ambitious expansion goals for geothermal and introduced the first nationwide funding and safeguarding instrument for the implementation of medium- and deep geothermal projects. Nine applications have already been submitted, including eight for project preparatory studies and one for 2D seismic surveys in the Aachen area.
The funding will support geothermal in the following ways:
- Exploratory drilling – In many regions of the country, the subsoil is fundamentally suitable for geothermal energy extraction. To explore the subsoil more precisely with drilling, in addition to seismic measurements, companies can now receive subsidies amounting to 60 percent of the costs for exploratory drilling. Maximum funding: €8 million.
- Improved risk coverage – The state assumes exploration risks and will now cover 60 percent of the eligible costs for the first well. Maximum coverage: €10 million.
- Expansion of funding program – The state government is providing €40 million through a NRW.BANK fund for the “progres.nrw – Risk Hedging for Hydrothermal Geothermal Energy” funding program. This doubles the funds provided under the Geothermal Master Plan.
Applications for the new funding can be submitted starting 8 April 2025. There will also be a webinar on 9 April 2025 on the new funding program organized by the Ministry of Economic Affairs, Industry, Climate Protection and Energy with NRW.Energy4Climate and NRW.BANK. Click here to join the webinar.
All further information on the application process and answers to frequently asked questions (FAQs) can be found here.
“We are digging the treasure beneath our feet for the sustainable, secure, and affordable heat supply of the future – this is clearly evident here during the geothermal exploration in Krefeld. With our improved funding, we are giving municipalities and utilities the impetus to invest now in secure and affordable heat from the region. This is worthwhile for everyone: for citizens, municipalities, companies – and, of course, for our climate,” said Minister Neubaur.
Source: The State of North Rhine-Westphalia
