ALPHAXIOMS Geothermal News & Energy Research

Germany Launches Landmark Financing Program to Accelerate Deep Geothermal Heat Projects By: Robert Buluma Germany has taken a decisive step toward securing a climate-neutral heat future. On December 18, 2025, the German Federal Ministry for Economic Affairs and Energy (BMWK), KfW Development Bank , and global reinsurer Munich Re officially launched a groundbreaking funding program designed to unlock large-scale investments in deep geothermal energy for municipal and industrial heat supply. The new initiative, known as the KfW Geothermal Promotional Loan (KfW-Förderkredit Geothermie), directly addresses one of the most persistent bottlenecks in geothermal development: the high financial risk associated with drilling deep geothermal wells. By combining low-interest loans with comprehensive risk coverage, the program is set to significantly accelerate geothermal deployment across Germany. Why Deep Geothermal Matters for Germany’s Heat Transition While Germany has made remarkable progre...

Insurers Planning Solutions for Deep Geothermal Energy By  Robert Buluma In the pursuit of sustainable energy sources, deep geothermal energy has emerged as a promising avenue. However, challenges such as drilling risks and lack of insurance coverage have hindered its widespread adoption. Addressing these concerns, the Federal Ministry of Economics is deliberating solutions in collaboration with KfW, the federally owned development bank, to ensure the viability of deep geothermal energy projects. The Need for Insurance Coverage: One of the major obstacles faced by utilities and municipal utilities in implementing deep geothermal projects is the absence of insurance coverage. The uncertainty surrounding drilling success and the potential shortfall in expected heat production deter stakeholders from investing in such ventures. Proposed Solution: To mitigate these concerns, the proposed solution involves insuring the drilling success through KfW. Under this arrangement, if the project...