85 Degrees secures €200m financing for geothermal heating projects in the Netherlands

Renewable heat infrastructure company 85 Degrees Renewable Ltd (85 Degrees) has announced the closing of a framework project finance facility of up to EUR 200 million with ING and Rabobank to support the development of its geothermal heat projects in the Netherlands and further, long-term growth.

The transaction marks an important milestone for both 85 Degrees and the Dutch geothermal sector, demonstrating that well-developed geothermal infrastructure is increasingly recognised as a mature asset class capable of attracting long-term project finance. 85 Degrees is backed by the Foresight Group, following the investment of Foresight Energy Infrastructure Partners (FEIP) back in 2021.

The financing will initially support geothermal development in the Central Oostland region, particularly in Bleiswijk, Berkel, and Rodenrijs, where 85 Degrees is working on several geothermal projects with Gaia Energy. By supplying geothermal heat to greenhouses in the region, greenhouse growers can significantly reduce their dependence on natural gas, thus improving the competitiveness and sustainability of on the Netherlands’ most important sectors.

Five wells have already been drilled so far in the Bleiswijk study area, and the first heat is expected to be supplied soon to connected customers. The successful drilling program has also reduced subsurface risk across the assets and provided the foundation for further expansion of the development.

“This financing represents much more than the successful closing of a debt transaction. It demonstrates the confidence that leading renewable infrastructure lenders ING and Rabobank have in our strategy and confirms that geothermal heat infrastructure has matured into an investable infrastructure asset class capable of attracting long-term project finance,” said Bart Duijndam, CEO of 85 Degress Renewable.

“Together with Gaia Energy, we are building a platform that will accelerate the decarbonisation of Dutch greenhouse horticulture while supporting the wider heat transition in the Netherlands.”

“This financing is an important milestone for 85 Degrees, providing a strong foundation for the platform’s next phase of growth. Together with our partners, we share a clear ambition to scale 85 Degrees into a leading renewable heat platform, supporting the continued expansion of renewable heat infrastructure across the Netherlands,” added Richard Thompson, Partner at Foresight Group.

Source: 85 Degrees Renewables