Equity investment to support 62-MW geothermal heat project in Netherlands

Zoetermeer, Netherlands (source: zoetnet / flickr, Creative Commons)

Foresight Energy Infrastructure Partners S.C.Sp (FEIP) has announced further equity investment into geothermal company 85 Degrees Renewable to fully fund the construction of 61.8 MW of geothermal heating capacity in Zoetermeer, Netherlands.

85 Degrees Renewable is a geothermal company focused on providing direct heating to agricultural, residential, and agricultural customers.

FEIP is Foresight Group’s EUR 850-million energy transition fund which invests in clean energy assets across renewables, storage, and grid infrastructure. FEIP aims to build a diversified portfolio of high-quality energy infrastructure assets supercharging the energy transition by investing both in renewable energy generation and in key “bottleneck” assets including long duration energy storage and grid infrastructure, enabling the integration of further renewables on the grid.

FEIP had previously invested in a joint venture with 85 Degrees Renewable, aiming to develop a potential build out capacity of 200 MW.

FEIP’s investment into 85 Degrees Renewables represents one of the largest recent Geothermal investments in Europe and further strengthens the Netherlands’ position as a leader in the sector. With ambitious goals to expand its geothermal energy capacity, 85 Degrees Renewables aims to build out 1 GW of geothermal energy.

The investment by FEIP will enable 85 Degrees Renewables to scale its operations and accelerate the deployment of Geothermal Energy infrastructure in the Netherlands. The company’s expertise, coupled with FEIP’s substantial financial backing, will enable the build-out of the company’s substantial pipeline which benefits from the Dutch SDE++ subsidy, and create a lasting impact on the renewable energy landscape.

“We are pleased to partner with Foresight and FEIP for this substantial investment. Securing the funding for the construction of 62 MW of Geothermal Heat Capacity underscores the potential of our company and reflects our shared commitment towards achieving the renewable energy goals of the Netherlands,” said Nick Thain, Chief Investment Officer of 85 Degrees Renewables.

“We are thrilled to support 85 Degrees Renewables as we look to expand our activities in the Dutch geothermal sector. This investment represents a significant milestone in the renewable energy sector and demonstrates our confidence in the company’s capabilities, and the attractiveness of the Dutch market for Geothermal Energy, which is backed by a highly supportive regulatory framework and ambitious government targets to decarbonise heat consumption,” added Charlie Wright, Investment Director at Foresight.

“This investment represents a significant milestone in the Netherlands’ objective to decarbonise heat supply via the adoption of geothermal energy and contribute to a sustainable future for our country. By leveraging geothermal energy as a clean, safe, and reliable energy source, we aim to make a meaningful contribution to a sustainable and carbon-neutral future. Moreover, as geothermal energy replaces gas for heating in the Netherlands, it simultaneously frees up electricity capacity from the National Grid, aligning with our commitment to energy transition,” stated Bart Duijndam, Chief Executive Officer of 85 Degrees Renewables.

Source: Email correspondence