Djibouti Pays KenGen: A $1 Million Offer on a Five-Year-Old Geothermal Drilling Debt Djibouti has finally moved to pay part of what it owes Kenya Electricity Generating Company (KenGen) for drilling work done near Lake Assal. The amount is small next to KenGen's balance sheet. What it says about selling geothermal drilling services across Africa matters a lot more. KenGen's latest annual report says Djibouti's state geothermal agency, the Office Djiboutien de Développement de l'Énergie Géothermique (ODDEG), has offered a first instalment of about $1 million (Sh129 million) against outstanding invoices of $2.13 million (Sh276.03 million), according to Business Daily. "ODDEG has acknowledged the debt and has proposed an initial payment of $1 million as the first instalment towards settlement," KenGen said in the report. KenGen is Kenya's largest power producer, with about 54% of the market. The Kenyan government owns 70% of the company and the public holds t...
Eavor’s Breakthrough Geothermal System Set to Power Germany: Faster Drilling, Innovative Tech, and a New Era for Closed-Loop Geothermal
Germany is on the brink of a geothermal milestone as Canadian startup Eavor Technologies prepares to bring its innovative closed-loop geothermal system online in Geretsried. After two years of ambitious drilling, technical breakthroughs, and field-tested innovation, the project is expected to start producing clean power later this year—marking a major leap forward for next-generation geothermal energy.
This groundbreaking development not only accelerates Germany’s push toward renewable energy independence, but also solidifies Eavor as a global leader in advanced geothermal solutions.
A New Benchmark for Advanced Geothermal
Eavor’s Geretsried facility has captured global attention for one reason: it proves that geothermal energy can be deployed faster, deeper, and more efficiently than ever before.
After receiving a $107 million grant from the European Union’s Innovation Fund, Eavor began drilling in mid-2023. Their goal: to build the world’s first fully commercial closed-loop geothermal system using cutting-edge drilling and insulation technologies.
What Makes This System Different?
Unlike traditional geothermal—which requires naturally occurring hot water reservoirs—Eavor’s closed-loop design works like a massive underground radiator. The company drills:
- Two vertical wells reaching nearly 2.8 miles deep
- Twelve horizontal well laterals, each stretching 1.8 miles
- A sealed underground circuit that circulates water without disturbing groundwater or requiring fracking
This innovation makes geothermal possible even in regions where conventional systems aren’t viable—a game changer for countries like Germany.
50% Faster Drilling: A Breakthrough Moment
One of the biggest challenges in geothermal development is the high cost and slow speed of drilling. Early results at Geretsried showed the first eight laterals taking more than 100 days each, with drilling rigs costing over $100,000 per day.
But then came the breakthrough.
Eavor reported a 50% reduction in drilling time for the last four laterals after improving its tools, cooling systems, and drilling techniques.
Key Innovations Driving the Speed Gains
✔ Insulated drill pipe technology that keeps tools cool in extreme temperatures
✔ A redesigned drilling workflow that increased drill-bit lifespan by 3×
✔ Improved underground stability, reducing downtime
These gains not only cut costs, but also boost geothermal output by an estimated 35% per loop.
Clean Heat and Power for German Communities
Once fully complete, Eavor’s multi-loop system will generate:
- 8.2 MW of electricity
- 64 MW of district heating for Gemeinden in the region
The system is designed to be flexible—providing more heat in winter and more electricity in summer. This makes it an ideal partner to intermittent renewables like wind and solar, delivering reliable, round-the-clock clean energy.
Closed-Loop vs. Enhanced Geothermal: A New Path Forward
While companies like Fervo Energy and Sage Geosystems are advancing Enhanced Geothermal Systems (EGS), which involve fracturing the rock, Eavor’s closed-loop design avoids the seismic risks associated with fracking—particularly important in countries where fracking is restricted or banned.
Energy experts note, however, that closed-loop systems face challenges of their own, especially in achieving high enough heat flow to maximize energy production. But Eavor argues that the Geretsried data shows clear economic viability, with the levelized cost of heat already matching European averages of $50–$100/MWh-thermal.
Why This Project Matters
Geretsried is more than a geothermal plant—it’s a proof of concept for the future of global geothermal expansion.
If Eavor can repeat its results:
- Geothermal could become deployable almost anywhere on Earth
- Energy-secure heating could reduce reliance on volatile gas markets
- Renewable baseload power could complement solar and wind growth
- Drilling costs could continue dropping, similar to the shale and solar revolutions
As Eavor’s EVP Jeanine Vany explains:
“Much like solar, wind, and shale revolutionized costs, we now have a technical proof-point that geothermal is achieving the same in Europe.”
The world is watching—and Geretsried may soon mark the beginning of geothermal’s most transformative decade.
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