Germany to expedite approval processes for geothermal plants (updated)

Vulcan Energy Resources

28/06/2024 19:08

(Adds Vulcan Energy Resources comment in paragraphs 6-7)
       BERLIN, June 28 (Reuters) - Germany's economy ministry
said on Friday it was drafting a law to expedite the approval
processes for geothermal plants, heat pumps and heat storage
systems, as Berlin aims to phase out fossil fuels in its heating
system by 2045.
    Germany is home to one of Europe's biggest geothermal
reserves, which have been largely untapped due to local
opposition and bureaucratic hurdles.
    Surging energy prices in 2022 triggered new interest in the
renewable energy source, with big municipal utilities, and
German and international fossil fuel companies exploring
possible investments in the country.
    The geothermal energy sector in Europe's biggest economy has
been calling for a law to expand the energy source's potential
and remove many obstacles, including local opposition against
drilling and low government subsidies.
    Geothermal energy could cover more than a quarter of
Germany's annual heat demand with a production potential of over
300 terawatt hours, a study by Fraunhofer Institute showed last
year.
    Geothermal energy and lithium producer Vulcan Energy
Resources  VUL.AX   VULG.DE , which is listed in both Australia
and Germany, called the law a "forward-looking, groundbreaking
milestone".
    "We believe that geothermal heat and power is not only a
cornerstone of Germany's renewable energy future, but also a
critical component in achieving energy security, reducing carbon
emissions and fostering sustainable economic growth," CEO Cris
Moreno said.
    The draft law seeks to streamline bureaucratic procedures
and address legal barriers to support a faster and more
efficient expansion of renewable heat sources.
    "As with wind turbines and PV systems, these systems for
generating geothermal energy as well as heat pumps and heat
storage systems should ... also be given an overriding public
interest," the ministry said, adding some approval procedures
for geothermal projects currently take years.
    Berlin aims to expand geothermal energy generation so it
could feed 10 times as much energy into the heating network as
it does today by 2030, Scholz said last year, adding that the
number of geothermal power stations will rise to 54 from 42 in
the future.
    "By 2030, 10 terawatt hours (TWh) are to be generated from
geothermal energy. The law lays the foundations for this," the
ministry added.

 (Reporting by Riham Alkousaa; Additional reporting by Christoph
Steitz; Editing by Anil D'Silva)
 ((Riham.Alkousaa@thomsonreuters.com;))