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Eavor plots next step for novel geothermal project after rocky start

June 18, 2026 · Canary Media · Score: 23

A geothermal startup called Eavor Technologies is working through problems on a first-of-its-kind power plant in Geretsried, Germany. The project uses a "closed-loop" system: wells drilled miles underground, connected and sealed off, with water circulating through them to pick up heat from hot rock and carry it to the surface. Unlike traditional geothermal plants, which need natural pockets of steam or hot water, this approach is meant to work almost anywhere.

The company finished its first underground loop and started sending electricity to Germany's grid late last year, but ran into serious drilling trouble, including unstable wells and cement casing that let fluid leak between wells that were supposed to stay sealed off. Fixing this doubled the time and cost of the first loop, and the company had to stop after six pairs of wells instead of the twelve it planned. It's now looking for new partners and investors before starting loop two, so the timeline for finishing the full project, meant to eventually supply power or heating to nearby towns, has slipped.

None of this involves a program or rebate homeowners can use. It's a look at the challenges facing this next-generation geothermal technology as it moves from testing to real-world use. Experts say these kinds of setbacks are normal for a first attempt at new drilling technology, and other companies in the US are pursuing similar closed-loop projects, alongside a competing approach called enhanced geothermal systems.

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Program details
Program
EU Innovation Fund
Amount
$91,600,000
Technology
geothermal

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