Drilling operations at Maasdjik, Netherlands (source: Video screenshot, Aardwarmte Maasdijk)
Five financial institutions – BNG Bank, ING Bank, the Cooperative Rabobank, Triodos Bank, and asr – will provide project financing for the Maasdijk geothermal heating project in the Netherlands. This is the first time that this number of banks and insurers has been involved in a geothermal project.
More specifically, the financial institutions will account for three-quarters of the amount of the total investment needed for the project which is approximately EUR 115 million. The financing is divided into 60-65% for the source part and 35-40% for the construction of the heating network. The financing model for the Maasdijk project had been previously cited as a good financing example during a Members’ Meeting by Geothermie Nederland.
The Maasdijk geothermal project is being developed by Aardwarmte Maasdijk, a collaboration between the Maasdijk heat cooperative and HVC. HVC is an energy and raw materials company owned by 48 municipalities and 8 water boards.
With a capacity of approximately 45 to 60 MWth, the geothermal heating project can supply heat to about 70 greenhouse horticulture companies over a large part of southwestern Westland, or comparable to the heat requirement of 50,000 households. The project will consist of three doublets. The first doublet has already been drilled and tapped a resource with a temperature of 90 degrees Celsius at a depth of 2900 meters.
“Several parties are involved in the project financing because a geothermal project is not really standard. The potential risks are spread in this way,” said Michiel Kok of HVC.
“It is the first time that five financial parties are involved in a geothermal project. That is special and beautiful. In addition, we have split the financing into a part for the source (production) and a part for the realization of the infrastructure (the pipeline network) to the greenhouse horticulturists. I think we have created a future-proof blueprint for financing geothermal projects in the Netherlands,” added Kok.
