Europe Geothermal Energy Investment Opportunities, Companies, Resources, and Market Outlook

Investment Opportunities in Europe’s Geothermal Energy Market: Country-by-Country Resources, Companies, Challenges, and Growth Prospects

Europe is developing one of the world’s most diverse geothermal investment markets. The continent combines mature geothermal electricity industries in Italy, Iceland, and Türkiye with rapidly expanding district-heating markets in France, Germany, the Netherlands, Poland, Hungary, Denmark, and Switzerland.

The most attractive European opportunities are not limited to power generation. Investors can participate in geothermal district heating and cooling, industrial heat, geothermal heat pumps, enhanced geothermal systems, closed-loop systems, thermal storage, lithium extraction, drilling services, equipment manufacturing, and integrated energy networks.

The European Geothermal Energy Council reported that ten new geothermal district-heating and cooling systems began operation during 2025, adding approximately 70 MWth of capacity. New systems were reported in France, Germany, the Netherlands, Denmark, Serbia, and Spain.  Across Europe, more than 360 geothermal district-heating projects are under development or consideration, with Germany, France, and the Netherlands among the most active markets. 

 European Geothermal Investment Outlook

Geothermal energy has strategic value in Europe because it can provide firm renewable electricity, low-carbon heating, industrial process heat, seasonal thermal storage, and local energy security.

Heating is particularly important. Heating and cooling account for a large share of Europe’s energy demand, and many European countries remain dependent on imported natural gas or other fossil fuels for buildings and industry. Geothermal district heating can reduce exposure to fuel-price volatility while creating long-lived local infrastructure assets.

Europe also has a strong industrial base for geothermal development. Companies in France, Germany, Italy, Iceland, Türkiye, Austria, the Netherlands, Switzerland, and Denmark provide drilling services, turbines, heat pumps, district-energy systems, reservoir engineering, plant construction, and operation and maintenance.

The European investment case is supported by several structural trends. These include decarbonization policies, energy-security concerns, the electrification of heating, urban district-energy development, demand for renewable industrial heat, the growth of data centers, and increasing interest in domestic lithium and critical-mineral supply chains.

The European Commission has identified enhanced geothermal systems, closed-loop systems, and the recovery of lithium and other critical materials from geothermal brines as important clean-energy research and investment opportunities. 

Main European Investment Segments

The first major segment is conventional geothermal power. It is concentrated in volcanic and tectonically active regions such as Italy, Iceland, Türkiye, Portugal, Greece, and parts of the Balkans.

The second segment is geothermal district heating and cooling. This is highly developed in France and Iceland and is expanding rapidly in Germany, the Netherlands, Poland, Hungary, Denmark, and Switzerland.

The third segment is shallow geothermal and geothermal heat pumps. This market is relevant across nearly every European country because it does not require high-temperature reservoirs.

The fourth segment is deep sedimentary geothermal. It is especially attractive in Germany, France, the Netherlands, Belgium, Poland, Hungary, Austria, and Switzerland.

The fifth segment is advanced geothermal. EGS, closed-loop systems, super-hot-rock technology, and geothermal energy storage may expand geothermal development into regions that lack naturally permeable hydrothermal reservoirs.

The sixth segment is geothermal lithium and mineral extraction. France’s Upper Rhine Graben and Germany’s Upper Rhine Valley have attracted particular attention because their geothermal brines may contain lithium.

Iceland

Iceland is one of Europe’s most mature geothermal markets and one of the world’s leading examples of geothermal electricity and direct-use heat.

The country benefits from an exceptional geological setting on the Mid-Atlantic Ridge. Volcanic activity, high heat flow, shallow magma-related systems, and abundant hot-water resources create conditions suitable for electricity generation, district heating, industrial heat, greenhouse agriculture, aquaculture, and tourism.

Geothermal energy supplies a substantial share of Iceland’s space heating and electricity generation. Reykjavík and other communities use geothermal district heating extensively, while geothermal electricity supports households, industry, aluminium production, data infrastructure, and other energy-intensive activities.

Icelandic Resource Opportunities

The most attractive resource opportunities in Iceland include high-temperature volcanic reservoirs, low-temperature district-heating resources, geothermal power expansion, industrial heat, greenhouse agriculture, aquaculture, carbon-mineralization projects, geothermal tourism, and hydrogen production.

High-temperature resources are suitable for flash-steam and combined-cycle generation. Lower-temperature resources can support district heating, bathing facilities, aquaculture, food processing, and greenhouse operations.

Iceland also offers opportunities to combine geothermal energy with carbon capture and mineralization. Carbfix, associated with Reykjavík Energy, has developed a process for storing carbon dioxide in basalt formations. While carbon mineralization is not itself geothermal generation, the combination of geothermal power, industrial heat, and permanent carbon storage creates opportunities for integrated low-carbon industrial projects.

Icelandic Companies and Players

Reykjavík Energy is one of the most important geothermal organizations in Iceland. Through its ON Power subsidiary, it operates major geothermal facilities, including Hellisheiði and Nesjavellir.

ON Power produces geothermal electricity and hot water and has expertise in geothermal plant operation, reservoir management, district heating, and energy-system integration.

Landsvirkjun, Iceland’s national power company, is also a major renewable-energy player. Its generation portfolio includes hydroelectric and geothermal power, and it may participate in geothermal development, industrial supply, grid infrastructure, and energy-intensive projects.

Mannvit and Verkís are important Icelandic engineering companies with expertise in geothermal engineering, hydrology, energy infrastructure, and project development.

The Icelandic geothermal sector also includes equipment suppliers, drilling contractors, research organizations, tourism operators, greenhouse companies, aquaculture businesses, and international investors.

Icelandic Investment Opportunities

Investors can target geothermal power-plant upgrades, additional drilling, reservoir management, district-heating expansion, industrial heat, carbon-storage integration, greenhouse agriculture, aquaculture, tourism facilities, and energy-intensive industries.

One recent financing example involved the Nordic Investment Bank and Reykjavík Energy. The institutions signed a 10-year loan of approximately ISK 4.625 billion, or about EUR 32 million, to co-finance investment at ON Power’s Hellisheiði geothermal plant during 2025–2027. 

Iceland’s main challenges include a small domestic market, limited transmission connections, environmental concerns, volcanic risk, high construction costs, and competition for geothermal expertise and drilling equipment.

Italy

Italy is one of Europe’s historic geothermal leaders. The Larderello region in Tuscany is widely regarded as the birthplace of modern geothermal electricity generation and remains a major geothermal center.

Italy’s geothermal resources are concentrated mainly in Tuscany, particularly around Larderello, Travale-Radicondoli, and Mount Amiata. The country also has geothermal potential in Campania, Lazio, Sardinia, Sicily, and other volcanic or tectonically active areas.

Tuscany and Larderello

The Larderello geothermal complex is Italy’s dominant geothermal region. It contains multiple geothermal power plants and has decades of production, exploration, reservoir-management, and industrial experience.

The Valle Secolo geothermal plant is the largest geothermal facility in Europe, with nearly 120 MW of installed capacity. 

Italy’s geothermal investment opportunities include brownfield modernization, new production wells, reinjection, turbine replacement, emissions control, binary-cycle systems, district heating, industrial heat, and tourism-related applications.

Because the Larderello field is mature, investors must pay close attention to reservoir pressure, steam chemistry, non-condensable gases, well decline, and the sustainability of production. Brownfield projects may nevertheless be attractive because they benefit from existing infrastructure, established transmission, operating data, and experienced personnel.

Mount Amiata

Mount Amiata in southern Tuscany contains geothermal resources with different geological and operational characteristics from Larderello.

Investment opportunities include resource assessment, plant modernization, well-field management, emissions reduction, heat recovery, and local direct-use applications.

The region also offers opportunities to combine geothermal energy with agriculture, district heating, spas, tourism, and industrial heat.

Italian Companies and Players

Enel Green Power is the dominant geothermal company in Italy. It operates the major geothermal plants in Tuscany and manages extensive production, reinjection, maintenance, and reservoir-monitoring activities.

Enel’s geothermal operations include the historic Larderello area and the Monte Amiata fields. In 2025, Tuscany approved a further 20-year continuation of Enel Green Power’s geothermal concessions, extending the company’s operating horizon to 2046. 

Turboden, based in Italy and part of Mitsubishi Heavy Industries, is a major supplier of Organic Rankine Cycle systems. Its technology is relevant to low- and medium-temperature geothermal resources, industrial waste heat, biomass, and hybrid renewable-energy systems.

Exergy International is another important Italian geothermal technology company. It supplies geothermal turbines and power-generation systems and has participated in geothermal projects in several countries.

Italian engineering firms, drilling contractors, turbine manufacturers, utilities, universities, and research institutes provide a broad domestic value chain.

Italian Investment Opportunities

Italy’s best investment opportunities include redevelopment of mature geothermal fields, plant upgrades, low-temperature binary systems, direct-use heat, geothermal district heating, industrial heat, geothermal tourism, and export-oriented geothermal equipment manufacturing.

Enel has discussed a potential multibillion-euro geothermal investment programme in Italy involving new power plants and modernization. The investment case depends heavily on concession certainty and regulatory continuity. 

Italy’s major challenges include concession renewals, environmental concerns related to emissions, local opposition, resource concentration in Tuscany, long permitting procedures, and the high capital cost of deep drilling.

Türkiye

Türkiye is one of Europe’s largest geothermal electricity markets and a global leader in geothermal power development.

The country has approximately 1.7 GW of geothermal power capacity, according to Türkiye’s investment agency. 

Türkiye’s geothermal resources are concentrated mainly in western Anatolia, especially in the Aegean region. Aydın, Denizli, Manisa, İzmir, and nearby provinces contain many high-temperature geothermal fields.

Western Anatolian Resources

Western Türkiye is characterized by active fault systems, high heat flow, and deep geothermal reservoirs. These conditions have supported the rapid development of flash-steam and binary-cycle plants.

Investment opportunities include new power generation, well-field expansion, binary-cycle additions, district heating, greenhouse agriculture, aquaculture, industrial heat, tourism, and mineral recovery.

Türkiye’s geothermal sector has developed a strong connection between electricity generation and agricultural heat. Geothermal energy is used in greenhouse operations, particularly in western provinces where reliable low-cost heat can improve year-round production.

Turkish Companies and Players

Kipaş Holding, Gürmat, Soyak Energy, Turcas, MB Holding, RSC Enerji, and other Turkish companies have participated in geothermal development, generation, drilling, and equipment supply.

Gürmat is associated with major geothermal projects in western Türkiye and has developed both electricity and direct-use applications.

Margün Enerji is another important renewable-energy company. In 2026, it completed the acquisition of nine geothermal resource licences in Denizli and Manisa through Bosphorus Renewable Energy, representing a portfolio with reported potential of approximately 505 MWe. 

Turkish drilling companies, engineering contractors, equipment manufacturers, banks, and local authorities have played an important role in the sector’s expansion.

## Turkish Investment Opportunities

The most attractive opportunities include expansion of existing fields, drilling services, plant efficiency improvements, binary-cycle technology, greenhouse heating, geothermal district heating, industrial applications, and resource redevelopment.

Türkiye’s geothermal market benefits from strong domestic experience and a large resource base. However, investors face risks involving inflation, currency volatility, electricity tariffs, financing costs, geological uncertainty, reservoir sustainability, environmental opposition, and changes in incentives.

Some western Turkish fields have experienced concerns about reservoir management and non-condensable gas emissions. Projects should therefore include strong reinjection, monitoring, gas-abatement systems, and transparent environmental reporting.

France

France is one of Europe’s strongest geothermal heating markets. Its leading resource areas include the Paris Basin, the Upper Rhine Graben, Aquitaine, and several other sedimentary basins.

France is particularly attractive for deep geothermal district heating because many cities sit above sedimentary aquifers containing warm water at commercially useful temperatures.

Paris Basin

The Paris Basin is France’s leading geothermal district-heating region. The Dogger aquifer, located at several kilometres depth, has supplied heat to residential buildings and urban networks for decades.

Investment opportunities include new wells, network extensions, well rehabilitation, doublet optimization, heat-pump integration, thermal storage, cooling systems, and industrial heat.

Geothermal district heating can provide predictable long-term heat to large urban customer bases. The Paris region’s dense population and extensive district-heating infrastructure improve demand certainty.

A geothermal heating and cooling system developed for the 2024 Olympic Games supplied heat and cooling to approximately 600,000 square metres of residential and office space. The system involved a 10-kilometre supplementary network connected to an existing network of more than 70 kilometres. 

Upper Rhine Graben

The Upper Rhine Graben extends across France and Germany and is one of Europe’s most important advanced geothermal and lithium regions.

The resource has high heat flow and deep brines that may support geothermal electricity, industrial heat, district heating, and lithium extraction.

France’s Alsace region has attracted substantial attention from companies developing integrated geothermal-lithium projects. These projects aim to produce heat and electricity while recovering lithium from brine.

The main risks involve induced seismicity, brine chemistry, reinjection, mineral-extraction performance, permitting, and public acceptance.

French Companies and Players

Arverne Group is one of the leading French geothermal companies. It develops geothermal heating, drilling, subsurface services, and geothermal lithium projects.

Through its subsidiary 2gré, Arverne was awarded a contract for a geothermal district-heating project serving Clichy-sous-Bois and Livry-Gargan. The project was expected to involve approximately EUR 90 million in investment and was supported by project partners, ADEME, and the Île-de-France Region. 

Arverne’s subsidiary Lithium de France is developing geothermal heat and lithium opportunities in Alsace.

Dalkia is a major energy-services company involved in district heating, energy efficiency, and geothermal heat networks. Engie and its subsidiaries also participate in district energy, heat supply, and infrastructure development.

Idex is another important French energy-services company. It announced a EUR 70 million investment connected to geothermal energy and data-center waste heat in the Paris region. 

Eramet is relevant to the European geothermal-lithium value chain because of its mineral-processing expertise and interest in lithium projects.

French Investment Opportunities

France offers opportunities in district heating, geothermal heat networks, deep drilling, heat-pump integration, geothermal cooling, industrial heat, geothermal lithium, and brownfield well rehabilitation.

The French Heat Fund managed by ADEME is an important source of support for renewable heat and district-energy projects. In 2025, geothermal projects reportedly received approximately EUR 85 million in support under the programme.

France’s main challenges include drilling risk, induced seismicity, long permitting timelines, public acceptance, heat-network expansion costs, and the need to secure long-term municipal or commercial heat contracts.

Germany

Germany is one of Europe’s fastest-growing geothermal markets. Its strongest resources are located in the Upper Rhine Valley, the Bavarian Molasse Basin, the North German Basin, and parts of the South German region.

Germany’s geothermal investment opportunity is primarily focused on district heating and cooling rather than large-scale electricity generation. However, combined heat-and-power projects may become more attractive in regions with adequate temperatures and suitable power prices.

Upper Rhine Valley

The Upper Rhine Valley has high heat flow and significant deep geothermal potential. It is also associated with lithium-bearing brines.

Projects in the region may produce heat for municipalities, electricity through binary-cycle systems, and lithium for European battery supply chains.

In 2025, Cindrigo announced the acquisition of an 85% interest in three geothermal projects in Germany’s Upper Rhine Valley. The Eich, Weinheim, and Worms projects covered a licence area of approximately 125 square kilometres and had an initial target capacity of about 80 MW, with probable combined potential exceeding 300 MW in heat and power. 

Bavarian Molasse Basin

The Bavarian Molasse Basin is one of Germany’s leading geothermal district-heating regions. Munich and surrounding municipalities have developed or planned several deep geothermal systems.

The resource is attractive because it can supply warm water to urban heating networks. Municipal utilities have become major geothermal investors because they can combine resource development with long-term heat sales.

Investment opportunities include new wells, district-heating connections, heat pumps, aquifer management, industrial heat, and seasonal thermal storage.

German Companies and Players

Stadtwerke München is one of Germany’s most prominent geothermal utilities. It has invested substantially in geothermal district heating and aims to expand renewable heat supply for Munich.

Eavor has developed its Geretsried closed-loop geothermal project in Bavaria, which is an important reference point for advanced geothermal technology in Europe.

Daldrup & Söhne is a major German drilling company with expertise in geothermal wells, water wells, mining, and deep drilling.

Bestec, Bauer Resources, Herrenknecht, and other German engineering and drilling companies contribute to subsurface development, tunnel construction, drilling, and project services.

Local municipal utilities are central market players. They can provide heat offtake, public-sector financing, land access, customer connections, and long-term energy contracts.

German Investment Opportunities

Germany offers investment opportunities in geothermal district heating, deep sedimentary resources, EGS, closed-loop systems, geothermal lithium, heat-pump integration, municipal utilities, drilling contractors, and district-energy infrastructure.

The country’s federal heating transition and municipal heat-planning requirements may create long-term demand for renewable heat. However, project economics can be affected by high drilling costs, strict permitting, induced-seismicity concerns, public opposition, competition from heat pumps and waste heat, and complex municipal procurement processes.

# The Netherlands

The Netherlands has a strong geothermal direct-use market, especially for greenhouse agriculture. Its resources are mainly located in deep sedimentary formations.

## Greenhouse Geothermal

Dutch horticulture is a major consumer of geothermal heat. Greenhouses require large quantities of reliable heat, and geothermal energy can reduce natural-gas consumption.

Investment opportunities include new geothermal doublets, well-field expansion, greenhouse heat supply, district heating, aquifer management, and integration with heat pumps and seasonal storage.

The Netherlands is also developing geothermal heating for urban buildings and industrial facilities.

## Dutch Companies and Players

Aardwarmte Brabant, SCAN, Energie Beheer Nederland, Mijnwater, and various greenhouse operators and municipal utilities are relevant participants in the Dutch geothermal market.

Energie Beheer Nederland has supported geothermal exploration and data collection, while greenhouse companies have become important anchor customers.

Dutch drilling contractors, engineering companies, heat-network developers, and water-management specialists provide essential services.

## Dutch Investment Challenges

The Netherlands has faced induced-seismicity concerns, permitting complexity, well-integrity challenges, and uncertainty about the long-term performance of some reservoirs.

Investors should evaluate well spacing, reservoir connectivity, reinjection, thermal breakthrough, corrosion, scaling, customer concentration, and the financial strength of greenhouse operators.

# Switzerland

Switzerland has significant opportunities in shallow geothermal, ground-source heat pumps, district heating, and deep geothermal systems.

The country’s mountainous terrain and limited conventional high-temperature resources make building heating and cooling more important than utility-scale power.

## Swiss Resource Opportunities

Swiss investment opportunities include geothermal heat pumps, borehole thermal-energy storage, district heating, urban cooling, geothermal heat networks, and deep geothermal exploration.

Geneva, Zurich, Basel, and other urban areas have demand for low-carbon building heating and cooling.

Switzerland also has research and demonstration potential for EGS, although induced seismicity has affected public acceptance and project development.

## Swiss Companies and Players

Services industriels de Genève is involved in geothermal exploration and district-energy development.

Geo-Energie Suisse has promoted deep geothermal and EGS development, particularly in urban and industrial regions.

Swiss engineering companies, drilling contractors, utilities, heat-pump manufacturers, and building-energy firms provide a strong value chain.

The main challenges are high drilling costs, geological complexity, induced seismicity, strict environmental regulation, and public risk perception.

# Austria

Austria has geothermal resources in the Vienna Basin, Styrian Basin, and other sedimentary areas. The country has opportunities in district heating, thermal spas, greenhouses, and industrial heat.

## Austrian Resource Opportunities

The Vienna Basin may support geothermal district heating and industrial applications. Styria has a history of geothermal heating, spas, agriculture, and thermal tourism.

Austria’s geothermal investment opportunities include deep wells, municipal heat networks, geothermal heat pumps, thermal storage, industrial heat, and spa development.

## Austrian Companies and Players

Wien Energie is a major utility involved in district energy and renewable heating in Vienna.

OMV may contribute oil and gas expertise, subsurface data, drilling capabilities, and energy-transition partnerships.

Austrian engineering companies and drilling contractors can support resource exploration, plant construction, heat-network development, and operation.

Challenges include the high cost of deep wells, competing district-heating technologies, permitting requirements, and the need to secure customers with stable heat demand.

# Belgium

Belgium has opportunities in deep geothermal heating, especially in Flanders and Wallonia. The country has sedimentary resources that can support medium-temperature heat applications.

## Belgian Resource Opportunities

Geothermal investment opportunities include district heating, industrial heat, greenhouse agriculture, public buildings, and heat-pump integration.

The Kempen region in Flanders has attracted attention for deep geothermal heating and research.

Belgium’s industrial density and urban concentration can support district heating if projects are located near suitable customer networks.

## Belgian Companies and Players

VITO is an important Belgian research organization involved in geothermal resource assessment, deep geothermal research, and energy-system integration.

Belgian utilities, industrial companies, municipalities, drilling firms, and engineering consultancies are also relevant project participants.

Challenges include high drilling costs, limited high-temperature power potential, complex regional regulation, public acceptance, and the need to secure heat offtake.

# Poland

Poland has substantial geothermal heating potential due to its sedimentary basins and widespread district-heating networks.

The country is one of Europe’s important markets for direct-use geothermal energy, particularly in municipalities seeking to reduce coal and gas consumption.

## Polish Resource Opportunities

Investment opportunities include geothermal district heating, municipal heating systems, spa facilities, greenhouse agriculture, industrial heat, and geothermal heat pumps.

Podhale is one of Poland’s best-known geothermal heating regions. Other potential areas include central and western sedimentary basins.

Poland’s district-heating networks create a strong potential customer base. Geothermal energy can operate alongside biomass, heat pumps, waste heat, solar thermal, and thermal storage.

## Polish Companies and Players

Municipal heating companies, local governments, the Polish Geological Institute, the National Fund for Environmental Protection and Water Management, and geothermal operators are important market participants.

Poland’s investment opportunities are supported by the need to modernize coal-based heating systems and reduce local air pollution.

Challenges include deep-drilling costs, moderate temperatures, network losses, municipal finance constraints, reservoir uncertainty, and competition from biomass and large heat pumps.

# Hungary

Hungary has strong geothermal potential because of its high heat flow and deep sedimentary basins. Geothermal energy has long been used for spas, agriculture, district heating, and industrial applications.

## Hungarian Resource Opportunities

The most attractive opportunities include greenhouse heating, district heating, aquaculture, spas, food processing, industrial heat, and geothermal heat pumps.

Hungary’s agricultural sector provides strong demand for reliable thermal energy. Geothermal heating can support year-round greenhouse production and reduce dependence on natural gas.

The country also has opportunities to modernize existing wells, improve reinjection, expand district heating, and develop cascade systems in which the same geothermal fluid supplies multiple applications before reinjection.

## Hungarian Companies and Players

Municipal utilities, greenhouse operators, spa companies, drilling contractors, research institutions, and district-energy developers are important players.

Hungarian universities and geological organizations provide expertise in resource assessment, reservoir management, and geothermal utilization.

Challenges include poor reinjection in some projects, reservoir pressure decline, scaling, corrosion, water-management requirements, financing constraints, and fragmented ownership.

# Denmark

Denmark is emerging as an important geothermal district-heating market. The country has substantial district-heating infrastructure and policy support for low-carbon heating.

## Danish Resource Opportunities

Investment opportunities include deep geothermal district heating, integration with large heat pumps, thermal storage, heat-network modernization, and municipal heat supply.

Danish geothermal resources are generally moderate-temperature sedimentary formations. Electricity generation is less important than direct heat.

Geothermal can complement waste heat, biomass, heat pumps, solar thermal, and thermal storage within integrated district-heating systems.

## Danish Companies and Players

Aalborg Forsyning, Danmarks Tekniske Universitet, Danish geothermal developers, municipal utilities, and drilling-service companies are relevant participants.

Aalborg has been associated with geothermal district-heating plans and research into deep geothermal development.

Challenges include drilling risk, competition from large heat pumps, network economics, permitting, and the need to secure long-term municipal heat demand.

# Portugal

Portugal has geothermal electricity generation in the Azores, where volcanic resources are accessible and island grids require local renewable generation.

## Azores Resource Opportunities

The Azores offer opportunities in geothermal power expansion, plant modernization, drilling, reservoir management, and hybrid geothermal-wind systems.

Geothermal power can reduce dependence on imported fossil fuels and improve electricity security on island grids.

The main challenges are small system sizes, volcanic risk, limited transmission, drilling costs, environmental restrictions, and logistics.

## Portuguese Companies and Players

EDA Renováveis is a key renewable-energy company in the Azores and is associated with geothermal electricity development.

Portuguese universities, drilling contractors, engineering companies, and international geothermal suppliers also participate in the sector.

# Greece

Greece has geothermal resources associated with volcanic islands, tectonic zones, and sedimentary basins. The country has opportunities in geothermal power, district heating, greenhouses, aquaculture, spas, and tourism.

## Greek Resource Opportunities

The strongest opportunities are located in areas such as Milos, Nisyros, Lesbos, northern Greece, and other regions with geothermal manifestations.

Milos has historically attracted attention for geothermal power but also demonstrates the importance of community engagement and environmental management.

Low- and medium-temperature resources can support greenhouse agriculture, aquaculture, spas, food processing, and tourism.

Challenges include local opposition, visual and environmental concerns, island logistics, limited project finance, and uncertainty about electricity-market economics.

# Croatia and Serbia

Croatia and Serbia have valuable geothermal resources associated with the Pannonian Basin.

## Croatian Opportunities

Croatia offers geothermal investment opportunities in district heating, greenhouses, spas, tourism, and electricity generation from moderate-temperature resources.

The country has explored geothermal power in northern regions, including projects involving binary-cycle generation.

## Serbian Opportunities

Serbia has geothermal resources suitable for district heating, spas, agriculture, and industrial heat. The country’s district-heating sector and agricultural demand create potential customers.

New geothermal district-heating projects in Serbia were among the systems reported in Europe during 2025. [1]

The main challenges in both countries include financing, drilling risk, permitting, municipal capacity, network modernization, and the need to improve reinjection and reservoir management.

# Romania and Bulgaria

Romania and Bulgaria have geothermal resources in sedimentary basins and thermal regions. Their strongest opportunities are in district heating, greenhouse agriculture, spas, aquaculture, and industrial heat.

Romania has significant low- and medium-temperature geothermal resources in western areas and around the Pannonian Basin. Oradea is one of the best-known examples of geothermal district heating in the country.

Bulgaria has geothermal potential for spas, heating, tourism, agriculture, and municipal energy systems.

Investment challenges include aging wells, limited reinjection, insufficient modern drilling, fragmented local markets, underdeveloped heat networks, and public-sector financing constraints.

# Spain

Spain has geothermal potential in the Canary Islands, volcanic regions, sedimentary basins, and urban areas suitable for heat pumps.

The Canary Islands offer opportunities for geothermal power exploration because of their volcanic geology and isolated electricity systems.

Mainland Spain offers greater near-term potential in shallow geothermal, ground-source heat pumps, district heating, cooling, and thermal energy networks.

Investment opportunities include hotel and resort heating, greenhouse agriculture, district cooling, urban building systems, and geothermal power exploration in volcanic islands.

Challenges include limited geothermal power development, high exploration risk, regulatory complexity, competition from solar energy, and the need to establish clear resource data.

# The United Kingdom and Ireland

The United Kingdom has limited conventional high-temperature geothermal power potential but significant opportunities in deep geothermal heat, mine-water heating, ground-source heat pumps, and district energy.

## United Kingdom Opportunities

The United Kingdom’s resource opportunities include deep geothermal heat in Cornwall, mine-water heat in former coal-mining regions, district heating, geothermal heat pumps, and industrial heat.

Cornwall has attracted interest because of its geological heat potential and demand for low-carbon electricity and heat. The United Kingdom also has extensive abandoned mine workings that may provide sources of low-temperature heat for urban networks.

Investment opportunities include mine-water heat networks, municipal heating, industrial facilities, university campuses, and building-scale heat pumps.

Challenges include high drilling risk, limited power-market competitiveness, permitting, uncertain heat offtake, and the need to connect geothermal resources to district-heating infrastructure.

## Ireland Opportunities

Ireland’s geothermal market is primarily focused on shallow geothermal, heat pumps, district heating, and building decarbonization.

The country has limited high-temperature geothermal electricity potential but strong opportunities in commercial buildings, public facilities, agriculture, aquaculture, and thermal-energy networks.

# Resource-by-Resource European Investment Opportunities

## Geothermal Electricity

Conventional geothermal electricity remains strongest in Iceland, Italy, and Türkiye. Portugal’s Azores and Greece may offer smaller-scale opportunities.

The most attractive investments include field expansion, production-well drilling, plant modernization, binary-cycle additions, reservoir management, emissions control, and hybrid renewable-energy systems.

Investors should prioritize projects with proven resource temperatures, operating history, stable concessions, grid access, and long-term power contracts.

## District Heating and Cooling

District heating is arguably Europe’s largest near-term geothermal opportunity. France, Germany, the Netherlands, Iceland, Poland, Hungary, Denmark, Switzerland, and Austria are particularly important markets.

Geothermal district heating offers long-lived infrastructure revenues, but projects require substantial upfront spending on wells, heat exchangers, pipelines, substations, pumps, and customer connections.

The best projects are located near dense urban loads, municipal buildings, hospitals, universities, industrial customers, or greenhouse clusters.

## Geothermal Heat Pumps

Geothermal heat pumps have a continent-wide market because they can operate in regions without high-temperature geothermal resources.

Opportunities include residential systems, commercial buildings, public facilities, district thermal networks, borehole thermal storage, and large-scale heat-pump systems.

The main investment requirements are drilling capacity, installation quality, efficient building design, customer financing, and long-term maintenance.

## Industrial Heat

Industrial facilities require process heat for food processing, chemicals, paper, textiles, manufacturing, drying, and other operations.

Geothermal heat can replace natural gas or oil where resource temperatures and customer demand are suitable.

Investors should identify industrial customers before drilling and negotiate long-term heat contracts that reflect temperature, availability, pressure, and seasonal demand.

## Geothermal Lithium

Geothermal lithium is most relevant in the Upper Rhine region of France and Germany, as well as selected areas of Italy and other countries.

The opportunity is strategically important because Europe seeks domestic critical-mineral supply chains for batteries and electric vehicles.

However, investors must evaluate mineral concentration, extraction technology, chemical consumption, product quality, brine throughput, corrosion, scaling, waste, reinjection, and environmental approvals.

## Geothermal Storage

Geothermal systems can provide thermal storage through boreholes, aquifers, reservoirs, and pressurized engineered systems.

Investment opportunities include district heating, data centers, industrial parks, solar-thermal integration, waste-heat recovery, and seasonal building-energy storage.

Storage projects can improve the value of intermittent renewable power and reduce peak heating demand.

# European Geothermal Companies

Europe has one of the world’s strongest geothermal technology and services ecosystems.

Enel Green Power is the dominant geothermal operator in Italy and one of the most experienced geothermal utilities globally.

ON Power and Reykjavík Energy are major Icelandic geothermal companies with expertise in power generation, district heating, reservoirs, and energy-intensive industrial supply.

Arverne Group is a leading French geothermal developer involved in deep geothermal heating, drilling, district heating, and geothermal lithium.

Dalkia, Engie, Idex, and other French energy-services companies participate in district heating, energy infrastructure, and customer supply.

Turboden supplies Organic Rankine Cycle systems for geothermal, biomass, waste heat, and other applications.

Exergy International supplies geothermal turbines and power-conversion systems and has an important position in Italy and international markets.

Daldrup & Söhne is a major German drilling company serving geothermal, water, mining, and deep-drilling markets.

Eavor develops closed-loop geothermal systems and has become one of Europe’s leading advanced-geothermal technology companies.

Vulcan Energy Resources is associated with geothermal energy and lithium production in the Upper Rhine Valley.

European oil and gas companies, including OMV, Wintershall Dea’s successor entities, and other subsurface specialists, may provide drilling, geological, infrastructure, and financing capabilities.

Research institutions such as the European Commission’s Joint Research Centre, GFZ Potsdam, BRGM, TNO, VITO, ETH Zurich, DTU, Icelandic universities, and Italian research institutes support resource characterization and technology development.

European Geothermal Investment Challenges

Geological Risk

The largest risk is uncertainty about the subsurface. Temperature, permeability, flow rate, reservoir size, chemistry, and sustainability may differ from initial estimates.

Deep geothermal projects should use independent geological assessments, seismic surveys, temperature data, exploration wells, reservoir models, and contingency budgets.

Drilling Cost

Drilling represents one of the largest capital items in deep geothermal development. Costs rise with depth, hard rock, high temperatures, lost circulation, corrosion, scaling, and difficult well trajectories.

Europe has a strong oil and gas services industry, but competition for rigs, crews, and specialized equipment can increase costs.

Induced Seismicity

Induced seismicity is one of Europe’s most important geothermal challenges. It has affected public acceptance and project development in Switzerland, France, Germany, and other countries.

Projects must include baseline seismic monitoring, conservative stimulation protocols, traffic-light systems, transparent data disclosure, and clear emergency procedures.

Permitting

Permitting remains a major barrier. Deep geothermal projects may involve water law, mining law, environmental approvals, land-use permissions, energy regulation, drilling permits, and local planning.

The European geothermal sector has identified permitting, financial-risk guarantees, geological-data access, workforce shortages, and public acceptance as major bottlenecks. 

Financing

Deep geothermal projects require large upfront investment before resource performance is fully known. This creates a financing gap between early exploration and commercial construction.

Risk-mitigation tools include public exploration grants, drilling guarantees, insurance, concessional finance, state-backed loans, municipal guarantees, and long-term heat or electricity contracts.

Heat Offtake

District-heating projects need customers close to the resource. If the heat network is too small, too far away, or poorly managed, the geothermal project may not achieve expected returns.

Investors should evaluate customer density, heat-load profiles, network ownership, tariff regulation, connection costs, seasonal demand, and competition from waste heat or heat pumps.

Regulatory Uncertainty

European geothermal regulation varies by country and sometimes by region. Different rules may govern heat ownership, water rights, mineral extraction, drilling, stimulation, environmental review, and grid connection.

Projects with lithium extraction face additional uncertainty related to mineral rights, chemical processing, waste handling, and product certification.

Skills Shortage

The sector requires geologists, reservoir engineers, drilling specialists, project financiers, environmental experts, heat-network designers, and plant operators.

The European Commission has identified skills shortages as an ongoing challenge. Oil and gas expertise can help address the gap, but geothermal-specific training remains necessary. 

Public Acceptance

Public opposition may arise because of concerns about induced seismicity, groundwater, land use, noise, traffic, industrialization, and perceived risks.

Projects should share geological data, explain risk-management systems, provide community benefits, involve local governments early, and consider local equity participation.

Investment Models in Europe

Municipal Partnerships

Municipal utilities are important geothermal investors because they can control district-heating networks, public land, customer connections, and local energy planning.

Public-private partnerships can combine municipal legitimacy and long-term heat demand with private drilling, construction, financing, and operating expertise.

Corporate Heat Contracts

Industrial companies, data centers, greenhouses, hospitals, airports, universities, and logistics facilities may sign long-term geothermal heat contracts.

These agreements can improve project bankability by creating predictable revenue before construction.

Infrastructure Funds

Operating geothermal plants and district-heating networks may appeal to infrastructure funds because they can generate long-term contracted cash flows.

Investors may target operating assets, brownfield expansions, network acquisitions, or portfolios of heat projects.

Venture Capital

Venture capital can support advanced geothermal, closed-loop technology, geothermal lithium extraction, drilling innovations, digital subsurface tools, and high-temperature materials.

The highest potential returns may come from companies that achieve repeatable performance and reduce drilling or reservoir risk across multiple markets.

European Investment Due Diligence

Investors should first assess the geothermal resource. This includes temperature, permeability, flow rate, reservoir volume, fluid chemistry, scaling potential, reinjection, thermal decline, and independent certification.

The drilling plan should be examined in detail. Investors should verify well depth, drilling contractor experience, casing design, high-temperature equipment, rig availability, contingency allowances, failure rates, and sidetrack assumptions.

The technology should be evaluated based on actual field performance rather than laboratory results. Important indicators include operating hours, thermal output, well productivity, reservoir longevity, maintenance requirements, and equipment reliability.

The market assessment should examine the electricity or heat customer, contract duration, PPA or heat price, capacity value, network connection, customer creditworthiness, and potential additional revenues from capacity services or mineral products.

Regulatory due diligence should cover geothermal ownership, water rights, mining rights, exploration licences, environmental review, seismic requirements, drilling permits, land access, Indigenous or community consultation, and decommissioning liabilities.

The financial model should include unsuccessful wells, construction delays, lower resource performance, lower energy prices, higher interest rates, equipment replacement, network overruns, reservoir decline, and additional environmental requirements.

Priority European Investment Markets

France is one of the strongest markets for geothermal district heating because of its established Dogger aquifer projects, dense urban demand, public support, and experienced developers.

Germany offers major growth potential in district heating, the Upper Rhine Valley, the Bavarian Molasse Basin, geothermal lithium, and advanced geothermal technology.

Italy remains attractive for brownfield geothermal investment, plant modernization, equipment manufacturing, and deep expertise, although concession certainty is essential.

Iceland is attractive for mature geothermal operations, district heating, industrial heat, carbon-storage integration, tourism, and energy-intensive industries.

Türkiye offers large-scale geothermal electricity, greenhouse heating, drilling, plant expansion, and direct-use opportunities, but investors must manage currency and regulatory risks.

The Netherlands provides attractive opportunities in greenhouse heating and district-energy systems, supported by concentrated demand and existing geothermal experience.

Poland and Hungary offer direct-use and district-heating opportunities, particularly where geothermal can replace coal or natural gas.

Switzerland and Austria offer geothermal heat pumps, district heating, thermal storage, and selected deep-geothermal opportunities.

The Upper Rhine region of France and Germany offers one of Europe’s most strategic integrated opportunities because it combines geothermal heat, electricity, and lithium extraction.

Europe’s geothermal market is therefore best approached through a diversified strategy. Mature geothermal-power markets can provide operating and brownfield opportunities, while district heating offers large near-term growth, and advanced geothermal and geothermal lithium provide higher-risk, higher-upside exposure.

The most attractive projects will combine strong geological evidence, secure heat or power offtake, credible drilling partners, clear permitting pathways, public or private risk support, and experienced operators.

Related: North America Geothermal Energy Investment Opportunities, Companies, Resources, and Market Outlook