What will become of the second loop in Geretsried?

November 6, 2026

Source: E & M powernews

The good news: Loop 1 of geothermal energy company Eavor in Geretsried is now operational. However, a second project planned for the site has been halted. It is unclear what will happen next.

The drilling rigs will be dismantled for now, postponing the implementation of Loop 2 indefinitely. However, the Canadian Eavor Group appears, on the one hand, to be 100 percent convinced of its specialized geothermal technology and, on the other hand—albeit not quite as fully—willing to continue the project in Upper Bavaria.

The Eavor Loop process does not require deep groundwater, but only hot rock through which water is circulated in a closed system. However, the project in Geretsried has proven to be quite challenging from a drilling perspective. This is hardly surprising, given that it is the first large-scale project of its kind.

Eavor technology undoubtedly has many advantages and could significantly advance geothermal energy, not only in this country. It could be a game-changer by opening up regions that were previously considered unsuitable for geothermal energy due to a lack of thermal water.

Challenging Drilling Phases

During the implementation in Geretsried, however, there were repeated technical problems, which were naturally also due to the fact that this was a “first-of-a-kind” project. These included difficulties with the drilling fluid system, strong vibrations, and, finally, contamination of the drilled laterals.

A company spokesperson explained to our editorial team, however, that all of this resulted in a “steep learning curve.” Through gradual improvements in design and processes, drilling time was significantly reduced. There is talk of an increase in the drilling progress rate of more than 90 percent over the course of the campaign. “This shows that the technology can be implemented much more efficiently as experience grows.” And, most importantly: The drilling challenges were not due to a failure of Eavor’s technology, but rather challenges that can arise in complex drilling projects.

Ultimately, these challenges would have impacted the overall schedule and costs. Therefore, according to the company, the project must be commercially restructured. This includes aligning the interests and requirements of both the client and the investors. “Until a viable solution is agreed upon, we have decided to withdraw the drilling rigs, as they incur significant ongoing costs even when idle.”

At the same time, the company emphasizes that Geretsried remains a “priority project” for Eavor. It is working together with its partners to create the conditions for a positive final investment decision on Loop 2. Eavor speaks of “as soon as possible,” but does not want to commit to a specific date. In the meantime, Eavor points out that Loop 1 is successfully in operation and provides 8 MW of thermal output. This is converted into electricity via an ORC plant. However, there is still no district heating network available for the direct use of this heat.

Meanwhile, Isar Loisach Naturwärme GmbH (ILN), which is responsible for the construction and operation of a future district heating network, has withdrawn from its heat supply contract with Eavor. According to the subsidiary of Stadtwerke Geretsried, following the removal of the drilling rigs, it is no longer possible to reliably predict whether and when the second loop will be built and the heat intended for the district heating project can be supplied.

“The decision to withdraw from the contract was not an easy one for us,” Geretsried’s Mayor Patrik Kohlert is quoted as saying in a press release. “ILN’s goal is to provide a heat supply for a medium-sized town that is reliable, affordable, and economically viable. Under the current conditions, we cannot say that with any certainty.” However: “If Eavor presents reliable and economically viable conditions, we are ready to resume discussions at any time,” said ILN Managing Director Jan Döhring.

A continuation of the project with the originally planned second loop therefore does not seem out of the question, but rather a matter of redistributing the project costs.

End of the Road for Geothermal Project in Hanover

There is, however, no hope for a deep geothermal project in Hanover, from which the energy company Enercity had high expectations—specifically, 30 MW from two loops for district heating. Eavor’s withdrawal was also announced in October. The company emphasizes that there is no connection between Hannover and Geretsried. The withdrawal from Hannover is justified by a strategic realignment of the business model. In other words, the company intends to operate solely as a technology firm in the future, rather than developing projects on its own.

Author: Günter Drewnitzky