In a media release, the EIB said that the closed-loop technology, in contrast to conventional geothermal heating, does not capture heat from subsurface water or steam. Instead, the company drills deeply into the earth and harvests the heat directly from underground rocks, according to the media release.
The Eavor-LoopTM system resembles a giant underground radiator, EIB said. Two vertical wells are drilled to a depth of 14,764 to 16,404 feet. Subsequently, 12 pairs of horizontal laterals, 9,842 to 11,482 feet long, are drilled from the bases of each of the two wells, totaling approximately 56 miles of drilling (around 198 to 223 miles for four loops). The massive radiator is then filled with fluid.
The system operates naturally on a thermosiphon. The water in the bottom part of the system is heated by the underground rock and naturally rises to the surface where it can be used directly for district heating or to generate power, EIB explained.
The EIB said the total investment in the first commercial-scale Eavor-LoopTM project will be $377 million (EUR 350 million). The EU Innovation Fund will add $98.7 million (EUR 91.6 million) in addition to the EIB loan.
The project is co-financed by Japan Bank for International Cooperation (JBIC), ING Bank NV (ING) and Mizuho Bank Ltd. (Mizuho) and is insured by Japan's Export Credit Agency, Nippon Export and Investment Insurance (NEXI). The combined support from the EIB, JBIC, ING and Mizuho amounts to $149.8 million (EUR 130 million).
Before building the Eavor-LoopTM, Eavor built a pilot in Alberta, Canada, in 2019. The Eavor-Lite has been in operation ever since. The system proved to emit fewer greenhouse gasses than conventional geothermal systems as there is no need for pumps or reinjection of fluids. A subterranean rock is needed to use the thermal conductivity, EIB said.
The Eavor-LoopTM will provide heating to households and businesses. In addition, a power station on site will convert the geothermal heat to electricity. Eavor has already signed an offtake contract with the local heat provider and intends to start heat delivery in 2026.
Eavor-LoopTM has started developing a second project in Germany to supply 15-20 percent of the demand for district heating in Hanover in the German state of Lower Saxony, EIB said.
“In addition to wind and solar energy, geothermal heat provides a natural, steady and reliable source of clean renewable energy. The Eavor-LoopTM, therefore, supports the transition to a carbon-neutral energy system in Germany and helps the country to get independent from fossil fuels, while adding to energy security for the people and businesses”, Nicola Beer, EIB vice president with oversight of financing in Germany, said.
