Federal Republic of Germany/ Loan Insurance for Geretsried innovative geothermal power generation and district heat supply project

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) decided to provide insurance for loans extended by commercial financial institutions to a German entity Eavor Erdwärme Geretsried GmbH invested by Chubu Electric Power Co., Ltd. together with Eavor Technologies Inc.

This project is to construct, operate and maintain the closed-loop geothermal power plant with total capacity of 64MWth/8.2MWe located at the Breitenbach mining site (in a non-volcanic area) in Geretsried(state of Bavaria, Germany).

NEXI’s insurance will cover a loan of approximately EUR 44 million provided by two commercial banks: Mizuho Bank Ltd. and ING Bank N.V., Tokyo Branch. The Japan Bank for International Cooperation (JBIC) and the European Investment Bank (EIB), a multilateral financial institution in Europe, have also decided to support the project.

The project is recognized as the first commercial implementation of a closed-loop geothermal technology called Eavor-Loop™ that has been developed by Eavor Technologies Inc., a Canadian startup, collaborating with a Japanese company. The project will receive a grant from the European Innovation Fund (EIU), based on the evaluation by the EIU that the project will contribute on a stable supply of power and heat generated by renewable energies within Europe, through the next-generation technology that significantly reduces greenhouse gas emissions during operation and can be virtually applied to even non-volcanic areas. It is also expected that this new technology will be implemented around the world, following this project.

The project is also aligned with national policies called Heating Law (Gesetz für Erneuerbares Heizen) issued by the German Federal Government, which was enforced by the German Parliament in January 2024, stipulating that at least 65% of all heating systems, such as for residential or industrial use, must be powered by renewables. The project is also consistent with initiatives that NEXI actively promotes called LEAD Initiative¹.

NEXI will continue to actively support Japanese companies to expand their global business and achieve decarbonization with utilizing new technologies, as a Japanese financial institution to implement national policies.

Insured	Mizuho Bank Ltd., ING Bank N.V., Tokyo Branch
Insured amount	Approximately equivalent to EUR 44 million JPY
Covered risks	Political risk 100%, Commercial risk 97.5%

Contact
Power Group
Structured and Trade Finance Insurance Department
Tel: #81-(0)3-3512-7340

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