09 Jul 2024

Geothermal Power Project in Lower Saxony, Germany Secures Private Investment

09 Jul 2024  by Geothermal   

TerraThermo and alfa8 sign an Investment Agreement to support Projekt THERMO in Lower Saxony, Germany (source: ZeroGeo Energy)
alfa8 Colab Limited (“alfa8”) has signed an Investment Agreement with TerraThermo Limited (“TerraThermo”) whereby alfa8 will invest in TerraThermo and the development of Projekt Thermo, a 12-MW geothermal power project in Lower Saxony, Germany.

The Investment provides for:

up to €1m in working capital, to advance Projekt Thermo to financial close; and

up to €32.5m in future financings for Projekt Thermo, subject to certain conditions.

TerraThermo will use the alfa8 working capital to undertake technical and financial due diligence on the project, with the intention of reaching financial close in Q4 2024/Q1 2025. In additiona to alfa8’s financing, TerraThermo is in discussions with the European Investment Bank (EIB) on a potential parallel investment to fund up to €32.5m for Projekt Thermo.

TerraThermo Limited, an Irish company, has been formed to be a leading European deep geothermal power generation company delivering Energy From Rocks™. The company is committed to contributing to the energy transition by delivering low carbon and baseload geothermal power & storage at industrial scale by deploying enhanced geothermal technologies fused with leading energy project implementation and financing expertise.

“We are extremely pleased to have alfa8 as an investor in TerraThermo given their focus on “first of a kind” technology and our matching visions and expectations of what can be achieved in the geothermal energy industry in the coming years. We look forward to working with alfa8 to deliver Projekt Thermo,” said John Ashbridge, CEO of TerraThermo.

As previously announced by ZeroGeo Energy, the first stage of Projekt Thermo is to develop a 12MW “Hot Dry Rock” geothermal power plant in Lower Saxony, Germany. It would be the first of many deep geothermal power generation and energy storage projects in Europe developed by TerraThermo.

“TerraThermo is focussed on delivering a first of a kind, deep hot dry rock geothermal project in Europe. We are excited to team up with them to accelerate the development of geothermal technology in Europe. At alfa8 we are on a mission to deploy catalytic capital into the energy transition and promising first of a kind technologies that can accelerate the path to net-zero,” commented Erin Glen, COO of alfa8

alfa8 is a family office leveraging more than a century of maritime heritage and a long track record in Venture and Private-Equity to invest in the next-gen of maritime-tech and energy transition leaders.

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