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...