Eavor Demobilizes Rigs from Geretsried: What It Really Means for Closed-Loop Geothermal For three years, two drilling rigs on a farm estate near Geretsried, a Bavarian town about 40 km south of Munich, stood as the symbol of the world's most ambitious closed-loop geothermal experiment. Now in October 2026, Eavor Technologies, the Calgary-based developer of the Eavor-Loop, has told the town and its heating utility that both rigs would leave the site . The company said keeping idle rigs and specialist services on site was costly, and that releasing them would help put the project in the strongest position to continue with Loop 2 once its commercial structure is reworked . On the surface, this is a logistics decision. Underneath, it is one of the clearest signals yet about where first-of-a-kind geothermal technology stands, and how hard it is to turn a technical proof into a bankable business. This article explains exactly what happened, what the move means and what it does not mean...
Eavor Remains Committed to Geretsried as Loop 1 Proves Closed-Loop Geothermal Technology at Commercial Scale
CALGARY, Canada / GERETSRIED, Germany,
Company confirms flagship German project has validated Eavor-Loop™ technology, achieved major drilling cost reductions, and will serve as the foundation for global deployment through licensing and next-generation drilling innovation.
Eavor Technologies has reaffirmed its commitment to completing the landmark Geretsried geothermal project, describing the development as a pivotal milestone not only for the company but also for the future of closed-loop geothermal energy worldwide.
In exclusive responses provided to Alphaxioms, Eavor President and Chief Executive Officer Mark Fitzgerald confirmed that the company remains the operator of the project and is working closely with partners and stakeholders to complete the remaining development phases.
"Eavor is currently the operator at Geretsried and rest assured we are fully committed to the successful completion of the project. We are actively working with strong partners and stakeholders to ensure the best path forward for the remaining loops. This is a flagship project for Eavor, a true first-of-a-kind, and one of the most complex drilling projects anywhere in the world."
Mark Fitzgerald, president and CEO - Eavor
The comments come as industry attention continues to focus on Geretsried, widely regarded as one of the world's most ambitious advanced geothermal developments and the first commercial-scale deployment of Eavor's proprietary closed-loop geothermal technology.
According to Fitzgerald, the completion of the first Eavor-Loop™ has successfully demonstrated that the company's technology functions exactly as intended under real operating conditions.
"The first loop at Geretsried was meant to demonstrate that the Eavor-Loop™ technology works as designed, at scale, and this has been proven. Each piece of the system, as well as the enabling technologies have been demonstrated in this work."
He added that while first-of-a-kind projects inevitably encounter engineering challenges, they also create valuable operational experience that significantly lowers future costs.
"The next loops will further demonstrate the learning curve and the ability to keep coming down the cost curve , something we've already seen in our real-world experience at Geretsried."
A Flagship Project for Next-Generation Geothermal
Located in Bavaria, southern Germany, the Geretsried project represents one of the most technically sophisticated geothermal developments currently underway anywhere in the world.
Unlike conventional geothermal projects, which depend on naturally permeable underground reservoirs containing hot water or steam, Eavor's closed-loop system is designed to extract heat directly from hot rock using a sealed underground circulation system.
Because the working fluid remains inside the closed loop, the technology avoids many of the geological risks associated with traditional geothermal developments, including reservoir depletion, fluid loss and induced seismicity linked to fluid injection.
If deployed successfully at scale, closed-loop geothermal could unlock geothermal energy in regions previously considered unsuitable for conventional development, significantly expanding the global geothermal market.
For this reason, Geretsried has become one of the industry's most closely watched demonstration projects.
€350 Million Development Progress
The Geretsried project was originally budgeted at approximately €350 million, covering the construction of a commercial facility incorporating four complete Eavor-Loops.
According to Eavor, approximately two-thirds of the overall budget has now been allocated.
That investment has funded not only the successful construction and commissioning of Loop 1, but also much of the permanent infrastructure, drilling facilities and surface equipment required for the entire commercial plant.
This means that a significant portion of future construction will benefit from infrastructure that is already in place, potentially improving overall project economics.
Like many pioneering energy projects, Geretsried experienced schedule delays and cost increases as engineers solved challenges that had never before been encountered on a commercial closed-loop geothermal system.
Rather than viewing those challenges as setbacks, Eavor says they have become the foundation for future efficiency improvements.
Learning Curve Already Reducing Costs
One of the most important outcomes from Geretsried has been the measurable improvement in drilling efficiency achieved during construction.
According to Eavor, the company achieved approximately 50% greater cost efficiency while drilling the final lateral wells compared with the first horizontal wells completed earlier in the project.
This represents a substantial improvement over the course of a single drilling campaign.
For investors and developers, such learning curves are often among the strongest indicators that a new technology is progressing towards commercial competitiveness.
Historically, similar cost reductions have been observed in industries ranging from offshore wind and solar photovoltaics to horizontal oil and gas drilling.
Each project contributes new engineering knowledge that makes subsequent projects faster, cheaper and more efficient.
Eavor believes Geretsried is now following that same trajectory.
The company says future loops will be constructed at materially lower costs per lateral as lessons learned from Loop 1 are incorporated into future designs.
Technical Challenges Led to Better Engineering
Among the most significant engineering challenges encountered during Geretsried was a hydraulic communication issue between two drilling rigs operating simultaneously.
That allowed drilling fluid carrying rock cuttings to flow back into previously completed well sections, creating operational complications.Rather than continuing with the original drilling strategy, Eavor modified its execution model and proceeded using one drilling rig at a time.
Importantly, the company emphasises that solving this issue did not require inventing new technology; but rather applying proven cementing techniques and industry best practices specifically for Eavor's multilateral well architecture.
Those modifications have now been integrated into future loop designs, reducing the likelihood of similar issues occurring during subsequent projects.
This experience also demonstrates one of the strengths of first-of-a-kind engineering projects: every challenge solved becomes a permanent improvement for future deployments.
Loop 1 Validates Critical Technologies
Beyond demonstrating the Eavor-Loop concept itself, Geretsried has successfully validated several proprietary technologies that underpin the company's future commercial strategy.
These include:
Insulated Drill Pipe, enabling improved thermal performance during drilling.
Rock-Pipe™, a specialised sealant designed for complex multilateral well systems.
Eavor-Link™ Active Magnetic Ranging (AMR) technology, allowing precise underground well intersections without requiring conventional wireline operations.
Together, these technologies form an integrated engineering platform that Eavor believes will support rapid commercial deployment across future projects.
Rather than representing individual innovations, they operate as interconnected components supporting the broader Eavor-Loop system.
Thermosiphon Effect Successfully Proven
A significant technical achievement at Geretsried is the successful demonstration of the thermosiphon effect under commercial operating conditions.
Unlike conventional geothermal facilities that rely on mechanical pumps to circulate fluids underground, the Eavor-Loop system uses natural physics.
Cool water descends through the injection side of the loop before entering deep underground laterals.
As the water absorbs heat through conduction from surrounding rock formations, it becomes less dense and naturally rises through the production side of the loop.
This continuous circulation occurs without requiring external pumping power.
As a result, the system avoids the parasitic energy consumption associated with continuously operating circulation pumps.
Lower internal energy consumption improves overall plant efficiency and increases the amount of electricity or heat available for customers.
According to Eavor, this thermosiphon behaviour has now been successfully demonstrated through the completion and commissioning of Loop 1.
That achievement provides one of the strongest validations to date of the company's closed-loop design philosophy.
The Company’s Technology Focus
While Geretsried remains Eavor's flagship project, the company says its long-term business strategy is increasingly centred on technology rather than project ownership.
Instead of independently developing every geothermal project around the world, Eavor intends to license its proprietary Eavor-Loop™ technology to strategic partners capable of accelerating deployment internationally.
Under this model, Eavor will continue providing technical expertise, engineering support and specialised well services while partners finance and develop commercial projects.
This approach allows the company to scale considerably faster than would be possible if every project remained wholly owned by Eavor.
Technology licensing has become a common commercial strategy across advanced energy industries because it enables rapid global expansion while maintaining quality control over proprietary systems.
If successful, Eavor's licensing model could significantly accelerate the international deployment of closed-loop geothermal energy.
Eavor-Jules™ Could Expand the Global Market
Alongside commercial deployment of the Eavor-Loop™, Eavor continues investing heavily in research and development.
One of its most important future advancements is Eavor-Jules™, an advanced drilling system designed to reach ultra-deep geological formations.
Accessing hotter rock means every Eavor-Loop can produce more thermal energy from the same underground footprint.
Higher temperatures increase electricity generation potential while reducing the levelised cost of energy.
Perhaps more importantly, deeper drilling could make geothermal development feasible across much larger geographical areas.
Many regions currently considered unsuitable for conventional geothermal may contain sufficient heat at greater depths.
If Eavor-Jules™ achieves commercial success, it could substantially expand the addressable global market for geothermal energy.
Why Geretsried Matters to the Energy Transition
The significance of Geretsried extends far beyond Germany.
Around the world, governments are seeking reliable low-carbon energy sources capable of complementing intermittent renewable generation from wind and solar.
Geothermal energy offers continuous baseload power, but conventional projects remain geographically constrained because they require naturally permeable underground reservoirs.
Closed-loop geothermal seeks to overcome those limitations by engineering the heat exchange system rather than depending on naturally occurring hydrothermal resources.
If costs continue declining through learning-by-doing, as Eavor believes they will, closed-loop systems could become an increasingly attractive option for countries seeking secure, domestic and emissions-free energy.
This could be particularly important for Europe, where energy security and diversification have become strategic priorities.
Looking Ahead
With Loop 1 successfully completed and commissioned, Eavor now turns its attention to completing the remaining loops while applying the engineering lessons gained during the first phase of construction.
The company believes those lessons have already translated into measurable improvements in drilling efficiency and lower projected costs for future development.
Geretsried therefore represents more than a single geothermal project.
It is becoming a full-scale demonstration of how first-of-a-kind technologies mature,from proving technical feasibility, to improving engineering execution, reducing costs and ultimately creating a repeatable commercial model.
For the geothermal industry, the coming years will determine whether Geretsried marks the beginning of a new era in closed-loop geothermal deployment.
If the learning curve observed during Loop 1 continues, Eavor's flagship project may ultimately be remembered not for the challenges it faced, but for establishing a blueprint for geothermal developments around the world.
Origins of The Geretsried Project
The Geretsried site has undergone a remarkable transformation over the past decade. A different company originally explored the site as a conventional geothermal prospect in southern Germany. However, that project encountered geological conditions unsuitable for a traditional hydrothermal development.
Eavor recognised the site as an opportunity to demonstrate a fundamentally different approach to geothermal energy production.
Instead of relying on naturally permeable underground reservoirs, Eavor’s project uses its proprietary Eavor-Loop™ concept, creating one of the world's first commercial-scale demonstrations of closed-loop geothermal technology.
That decision transformed Geretsried from a conventional geothermal project into one of the industry's most important technology demonstration sites.
Today, engineers, investors, utilities and governments across the world are closely monitoring its progress because the lessons learned here could shape future geothermal developments for decades.Unlike laboratory testing or pilot-scale demonstrations, Geretsried represents a real commercial project operating under real-world conditions.
The engineering knowledge generated therefore carries considerable value for the entire geothermal sector.
How Eavor-Loop™ Differs from Conventional Geothermal
Traditional geothermal power plants depend on naturally occurring underground reservoirs where hot water or steam can flow through permeable rock formations.
Developers must identify locations where three critical conditions exist simultaneously:
High underground temperatures.
Naturally permeable rocks.
Sufficient geothermal fluids.
If any of these conditions are absent, conventional geothermal development becomes difficult or economically unattractive.
Eavor-Loop™ approaches geothermal energy differently.
Instead of depending on naturally flowing underground fluids, the system creates a completely sealed underground heat exchanger.
Water circulates continuously inside the closed loop, absorbing heat from surrounding rock without mixing with underground groundwater.
Because the working fluid remains isolated from surrounding geology, operators avoid many of the risks associated with conventional geothermal systems, including fluid losses, reservoir decline and extensive water management requirements.
Closed-loop systems also reduce dependence on favourable geological conditions, potentially opening geothermal development opportunities across regions previously considered unsuitable.
While site-specific geology will always remain important, the technology aims to make geothermal energy accessible in a much broader range of locations.
Germany's Growing Interest in Geothermal Energy
Germany has increasingly recognised geothermal energy as an important component of its long-term energy transition.
As the country continues reducing dependence on fossil fuels while expanding renewable energy, policymakers have sought technologies capable of providing reliable, around-the-clock electricity and district heating.
Unlike wind and solar, geothermal energy is not affected by weather conditions.
It can provide stable baseload power throughout the year while also supplying low-carbon heat for residential, commercial and industrial applications.
Southern Germany, particularly Bavaria, possesses favourable geothermal resources and has become one of Europe's most active regions for geothermal development.
The success of Geretsried could therefore extend well beyond a single project.
If Eavor's technology proves commercially scalable, it could contribute to Germany's broader strategy of improving energy security, reducing greenhouse gas emissions and expanding domestic renewable energy production.
The project also aligns with Europe's wider objective of diversifying energy supplies while strengthening indigenous clean energy technologies.
Commercial Implications of the Licensing Strategy
Eavor’s intention to expand through technology licensing rather than solely developing projects independently, reflects the company’s origins as a geothermal technology company.Under this approach, strategic partners, including utilities, energy companies and infrastructure developers, could deploy Eavor-Loop™ technology under licence while receiving technical support from Eavor.
Such partnerships may accelerate deployment by combining Eavor's engineering expertise with the financial resources, project management capabilities and local market knowledge of established developers.
Rather than constructing every project itself, Eavor can focus on advancing technology, improving drilling techniques and supporting successful implementation worldwide.
This model also has the potential to reduce project delivery times and enable multiple developments to proceed simultaneously across different countries.
If widely adopted, the licensing strategy could help accelerate the commercialisation of closed-loop geothermal systems globally.
What Geretsried Means for Investors
Large infrastructure projects often experience higher costs during their initial deployment.
Investors generally expect first-of-a-kind technologies to encounter engineering challenges before reaching commercial maturity.
The key question is whether those early challenges generate improvements that lower future costs.
Eavor believes Geretsried has already demonstrated exactly that.
The reported 50% improvement in drilling cost efficiency during the project suggests that engineering experience is translating into measurable economic benefits.
For investors, this is an encouraging indicator because lower drilling costs typically improve project economics and increase the competitiveness of geothermal energy.
Equally important is the validation of enabling technologies such as Active Magnetic Ranging, Rock-Pipe™ and insulated drill pipe.
Successfully integrating these technologies reduces technical uncertainty for future projects.
While every geothermal development remains unique, proving these systems under commercial operating conditions provides valuable confidence for prospective customers, financing institutions and strategic partners.
As the geothermal industry seeks greater investment to support global decarbonisation, successful demonstrations like Geretsried may play an important role in attracting long-term capital.
Implications for the Global Geothermal Industry
The geothermal sector is entering a period of rapid technological innovation.
Alongside conventional geothermal development, companies around the world are advancing enhanced geothermal systems (EGS), superhot rock technologies, advanced drilling methods and closed-loop concepts.
These innovations share a common objective: expanding geothermal energy beyond traditional resource areas.
Geretsried occupies a unique position within this broader technological landscape because it represents one of the first commercial-scale demonstrations of a fully integrated closed-loop geothermal system.
Its progress will therefore be watched not only by geothermal developers but also by governments, utilities, engineering companies and investors seeking reliable low-carbon energy solutions.
Success at Geretsried could encourage broader adoption of closed-loop geothermal technologies in Europe, North America, Asia and other emerging geothermal markets.
It may also stimulate additional investment into advanced drilling technologies capable of accessing deeper and hotter geothermal resources.
If Eavor continues demonstrating lower costs, improved drilling performance and reliable long-term operation, Geretsried could become one of the defining projects that accelerates the next phase of geothermal industry growth.
For an industry seeking to expand beyond conventional geothermal reservoirs, the lessons emerging from Bavaria may ultimately influence geothermal development worldwide for years to come.
Related: Technical Update From Geretsried : What we built, What we learned, and what comes next
Source: Exclusive responses provided to Alphaxioms by Eavor Technologies, including comments from Mark Fitzgerald, President and CEO, together with technical information from Eavor Chief Technology and Operating Officer Matt Toews.
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