Who Is Really Funding Next-Gen Geothermal in 2026? Next-generation geothermal has moved beyond laboratory research into a capital-intensive commercialization phase. In 2026, the most important financing is no longer coming from one investor category: venture capital funds are financing drilling, subsurface modelling and hardware; strategic energy companies are providing equipment, project access and market credibility; banks are beginning to lend against contracted projects; and governments are absorbing exploration and first-of-a-kind technology risk. The strongest financing activity is concentrated in the United States and Canada, but Europe is becoming increasingly important through Germany-based deployment, European Union grants, UK innovation support, and strategic participation from European energy companies. The central investment question is changing from “Can this technology work?” to “Can the developer deliver repeatable, financeable projects at commercial cost?” The 2026 fun...
Košice Turns Up the Heat: Geothermal Energy to Warm the City After 30 Years in Waiting
After three decades of anticipation, the city of Košice, Slovakia, is finally set to tap into one of the Earth’s cleanest and most sustainable energy sources geothermal heat. On Wednesday, drilling begins on the long-awaited project “Utilization of Geothermal Energy in the Košice Basin”, marking a major leap toward energy independence and carbon neutrality for Slovakia’s eastern metropolis.
From the site of Svinica–Ďurkov, a new deep geothermal well will be drilled, expected to reach a temperature of 135°C and a flow rate of 55 liters per second. Two reinjection wells each plunging roughly 3,700 meters deep will accompany the main production well, ensuring a closed-loop system that reuses and reheats the geothermal water beneath the Earth’s surface. The third and final well is expected to be completed by mid-2026.
Turning Vision into Reality
The geothermal heating project is being spearheaded by Geoterm Košice, part of the Energetický a průmyslový holding (EPH) group, in partnership with MH Teplárenský holding, owned by Slovakia’s Ministry of Economy. The City of Košice is also a key stakeholder, having integrated the project into its newly approved urban plan earlier this year.
The collaboration is the result of a 2021 Memorandum of Understanding between the partners, which outlined their shared vision to harness the geothermal potential from the foothills of the Slanské Mountains to supply Košice with clean, renewable heat.
A Mayor’s Dream Fulfilled
“For years, I’ve said that the wells near Ďurkov hold an enormous, untapped potential for Košice’s green and sustainable future,” said Košice Mayor Jaroslav Polaček. “Few believed us when we claimed this dormant project could be revived. But today, that dream is becoming reality. We’re building the foundation for Košice to become a leader in modern, ecological heating.”
According to the mayor, the geothermal system will supply 90–100 MWt (megawatts thermal) — enough to produce nearly 175,000 megawatt-hours of thermal energy annually. This will significantly reduce the city’s dependence on natural gas, helping Košice cut emissions and stabilize energy costs for residents.
The project has been recognized as a National Investment Priority by Slovakia’s Ministry of Investments and Regional Development (MIRRI) and has received European Union funding under the Just Transition Fund. These milestones were key to unlocking financial support and official backing from Brussels.
Košice Joins Europe’s Climate Elite
Thanks to its geothermal ambitions and a series of over 30 green projects completed in the past five years, Košice has earned a spot among the EU’s 100 Climate-Neutral and Smart Cities by 2030 under the Mission EU initiative a rare achievement for a Slovak city.
Košice’s geothermal project will also break several records. It will feature the deepest wells ever drilled in Slovakia and one of Europe’s largest geothermal heating systems serving a single consumer — the Košice District Heating Plant (Tepláreň Košice).
“By 2028, hot water will flow through what we call the ‘Green Highway’ a 16-kilometer geothermal pipeline from Ďurkov to the city,” Polaček explained. “Up to 80% of Košice’s heat consumers will soon enjoy clean, stable, and locally sourced energy. That’s not just innovation it’s transformation.”
A Project Fueled by European Support
The project’s financial structure reflects a strong blend of local and EU collaboration. The three existing wells, valued at €18 million, will be complemented by three new deep wells and surface facilities worth an additional €35 million. Of this, €12 million will come from EU Just Transition Funds, while the remainder will be financed by Geoterm Košice and its shareholder SPP Infrastructure, part of the EPH Group.
Meanwhile, MH Teplárenský holding is leading the construction of the 16-kilometer geothermal pipeline, with an estimated cost of €67.7 million, including €44.2 million in EU funding. The pipeline project is currently in the public tendering phase, and the first geothermal heat deliveries to the Košice district heating system are expected in early 2028.
How It Works: From the Earth to Your Radiator
The geothermal water, naturally pressurized and mineral-rich, will rise from 3.7 kilometers below ground at 135°C. At the surface, its heat will be transferred to a secondary circuit of treated water the fluid that travels through the new pipeline to the Košice heating plant.
After transferring its heat, the cooled geothermal fluid will be reinjected back underground, where it will be reheated by the Earth’s natural geothermal gradient creating a sustainable, closed-loop system. In times of peak demand, the city’s heating plant will supplement supply with natural gas-powered units to ensure stable temperatures during cold spells.
Future expansions may include additional wells to increase geothermal output and reduce fossil fuel dependency even further.
A Turning Point for Slovakia’s Energy Future
Košice’s geothermal project stands as a beacon of what’s possible when technology, vision, and political will align. It’s a story of persistence — a 30-year dream now drilling into reality.
When complete, the Svinica–Ďurkov geothermal field won’t just heat homes. It will heat hope for cleaner air, lower costs, and a greener Slovakia ready to lead Europe’s energy transition.
Source: Spectator,Geothermal Transition
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