Enel Green Power enters German geothermal market with acquisition
Enel Green Power enters geothermal market in Germany with acquisition of a majority stake in Erdwärme Oberland and plans for a large geothermal power project.
In a remarkable step, Enel Green Power is making a move into the German geothermal market with an acquisition.
The company “acquired a 78.6% stake in Erdwärme Oberland GmbH (“EO”) from Erdwärme Bayern GmbH & Co. (“EB”), a company specialised in the development of geothermal projects in the Bavarian region. The acquisition was carried out through the issue of new shares in EO for a total consideration of 22 million euros, covering the initial investment requirements of the project.
With this transaction, EGP, the Enel Group company devoted to renewable energy, enters the German market, bringing with it the most advanced technology and a century-long experience in the field of geothermal power.
“This acquisition is very significant because it opens the door for Enel Green Power to a major, stable renewable energy market such as Germany” said Francesco Venturini, CEO of EGP. “The transaction demonstrates the Group’s ability to keep pace with market developments and quickly enter new countries, leveraging its global presence and experience to seize new market opportunities. We intend to build a solid platform for future investment opportunities in the country, both in geothermal power and in other sectors, contributing to achieving the target for the share of renewables in the European energy mix.”
EO has recently developed a project for the construction of a geothermal plant with a maximum expected capacity of about 26 MW. The project, located near the town of Weilheim, about 50 km south-west of Munich, will be developed under a mineral exploration concession granted by the Bavarian Ministry for Economic Affairs, Media, Energy and Technology valid for 3 years from December 2015 and in consultation with local communities. EO will begin with geological exploration activities in 2016.”
Source: release by Enel