Geothermal heating project in Gräfelfing, Germany to proceed without private partner
Graefelfing near Munich, Old Church St. Stephanus (source: Dominik Hundhammer,CC BY-SA 3.0)
Carlo Cariaga
18 Jun 2025
A geothermal heating project in Gräfelfing, Germany is now progressing to drilling and construction, albeit now under a 100% municipal-owned framework.
The geothermal heating project in Gräfelfing, Germany is now proceeding with the drilling of deep boreholes and the construction of the heating plant and the distribution network. However, it will continue under a different framework, with the municipality taking over the project without a private partner.
In 2022, the company Geothermie Gräfelfing was founded as a joint venture of Fernwärmenetz Gräfelfing (FWNG, 51%) and Silenos Energy (49%). A technical and economic feasibility study and exploration drilling were completed under the joint venture, prompting the municipality to give approval for the project to proceed. Deep drilling was initially planned for the 3rd quarter of 2024. The latest update from the municipality states that this has now been pushed to 2025 after the project has secured funding of EUR 50 million from the Federal Funding for Efficient Heat Networks (BEW).
The project will now continue to its Phase 2 implementation, but Silenos Energy will no longer be involved. This development comes up because of two factors:
- Based on an evaluation of the current framework conditions and financing option, the municipality of Gräfelfing can finance the project more cost-effectively without a privately financed share;
- Changes in funding conditions from the Federal Government and the State of Bavaria has made it necessary to make far-reaching adjustments to the corporate and financing structure, and it becomes fundamentally simpler to proceed with the project without the joint venture.
Thus, a mutual agreement was reached for Silenos Energy to transfer all its shares to FWNG. Following the transfer of shares, a tender for the drilling and construction work is expected to be announced soon.
“I wish GGK every success in the realization of the geothermal project. As project manager for the past few years, I am convinced that together we have paved the way for the implementation of the geothermal project and that this will create a groundbreaking and, above all, sustainable heat supply for the municipality of Gräfelfing,” said Silenos Managing Director Felix Koselleck.
“I am very pleased that years of careful preparatory work have borne fruit and that work is now underway in the foreseeable future. It was a tough job obtaining the crucial information, permits, and funding for such a significant project. A big thank you goes to our partner Silenos Energy for their excellent cooperation and hard work in ensuring the successful completion of Phase 1,” added Gräfelfing’s Mayor Peter Köstler.
Source: City of Gräfelfing
