E.ON taking big step on geothermal ambitions in Denmark

Winter view in Copenhagen, Denmark (source: flickr/ Kristoffer Trolle, creative commons)

In an announcement today, it is reported that E.ON and Danish geothermal development firm Geothermal Operating Company (GEOOP)’s existing owner group have decided to let E.ON increase it shares of ownership to allow GEOOP to be integrated into the E.ON group.

E.ON is a European electricity utility company, running one of the world’s largest investor-owned electric utility service providers. The company has operations all over Europe and has increasingly also looked into geothermal district heating. Among others the company is currently developing a geothermal project in Malmo, Sweden, just across the straight from Copenhagen, the capital of Denmark. One of the stakeholders in GEOOP, Ross DK is involved in this project. The company had also been involved in efforts in other countries, such as the UK. Furthermore the company owns a large stake in ORCan Energy, a small German ORC technology company, that has set up small power generation units at a geothermal project in Bavaria, Germany.

The move announced is made to strength E.ON and GEOOP ambition to increase the green energy production from geothermal energy in large scale in the Copenhagen and Øresund region.

In 2019, the new daughter company in E.ON submitted an application for exploration to the Danish Energy Agency with the intention to produce geothermal energy for district heating in Copenhagen. GEOOP has asserted that there is more energy in the hot water beneath Denmark in comparison to the total reserves of oil & gas in the Danish reservoirs.

“We see a large potential in geothermal energy. We have projects in both Germany and Sweden already. Knowledge, competence, focus on climate and economical sustainability are key components which characterise GEOOP and the owners behind the company.  With the partner setup in Geoop we are strengthening the required knowledge and insights into geothermal energy to find the right solution for the district heating system in a capital city like Copenhagen” says Peter Jonsson, CEO of E.ON Denmark.

In connection with the change GEOOP has hired several new employees with broad experience within development, exploration and production of geothermal energy.

“Geothermal energy is very different from production of oil & gas. In geothermal the single most important element is the integration into the existing distribution system for district heating. We have submitted an application to explore the subsurface with a exploration well already next year or in 2023. This is the shortest path to the best data, and the pathway with which we can deliver geothermal energy to district heating. We have worked diligently to reach this point, and we are excited to have E.ON as a partner to develop geothermal energy as a component in the heating supply of the future to Copenhagen.” Says CEO in GEOOP Lars Andersen.

FACTS:

• Geothermal Operating Company (GEOOP) is owned by E.ON, Ross DK and Iceland Drilling. The company was founded in 2016.
• GEOOP will become part of the E.ON group with a 51% of the share capital.
• The owners have as the only ones in the marked experience with geothermal projects in both Denmark, Sweden, Germany, the Netherlands and Iceland.
• GEOOP has applied for an exploration license for geothermal energy for district heating across Copenhagen with the Danish Energy Agency
• GEOOP vision is to produce green energy at a sustainable price and with the least environmental impact possible to avoid unnecessary harm to nature. GEOOP will produce CO2-neutral and cost-efficient geothermal energy with focus on the consumers at a competitive price with a high degree of security of supply – and without transporting fuel, as the hot water is right beneath Copenhagen.
• If GEOOP is awarded the geothermal license from the Danish Energy Agency the first step is to deliver 100 MW heat – that equates to heating of 30.000 homes. The next step is to expand from there.

Source: company release by email