Cindrigo Holdings Ltd, a prominent player in the clean baseload energy development sector, has unveiled plans to broaden its European portfolio by acquiring three new geothermal energy projects in Germany. These projects, located in the renowned geothermal region of the Upper Rhine Valley, mark a strategic entry into one of Europe’s most promising geothermal markets.
In a significant move, Cindrigo has inked a term sheet with Zukunft Geowärme GmbH (ZGW), a German geothermal project developer, to secure a majority interest in the trio of geothermal energy projects. With an initial target capacity of approximately 90 MW (roughly 30 MW each), these projects boast a combined target installed potential capacity exceeding 400 MW, encompassing both geothermal power and heat generation.
Germany stands out as one of the world’s most advanced and lucrative geothermal markets, supported by robust political backing, a well-developed legal structure, high power prices, and a strong demand for heat. The German Renewable Energy Sources Act (EEG) provides a stable and transparent support scheme for geothermal electricity generation, offering a feed-in tariff of €0.25/kWh for a 20-year term. Moreover, federal funding is available under the ‘Bundesförderung für effiziente Wärmenetze’ (BEW) subsidy program, covering up to 40% of construction CAPEX for heat production facilities.
The favorable financial and commercial landscape in Germany, combined with its extensive industrial ecosystem and proven track record in geothermal development, make it an enticing destination for investors and developers.
Lars Guldstrand, CEO of Cindrigo, expressed optimism about the expansion, stating, “Germany, Europe’s largest economy, is committed to clean energy, particularly geothermal. Our strategic entry into Germany aligns with our focus on European renewable energy projects in low-risk and stable jurisdictions with well-established governance, bolstering our current operations. With the recent acquisition of the 110 MW already-built CHP plant in Finland, adding this in Germany, we will reach 200 MW under contract, providing a strong platform for further expansion. We are excited to leverage Germany’s advanced infrastructure and supportive regulatory framework to build our market position and create new clean energy sources.”