In a further sign of capital inflows finding a way into the geothermal sector, Dutch firm 85 Degrees Renewable has announced a €200mn framework project finance facility to accelerate the growth of its renewable heat infrastructure platform.
The financing by two major banks, ING and Rabobank, supports the next phase of development and establishes a scalable platform for future growth, 85 Degrees Renewable noted a statement.
Bart Duijndam, CEO of 85 Degrees Renewable, said it represents much more than the successful closing of a debt transaction.
“It demonstrates the confidence that leading renewable infrastructure lenders ING and Rabobank have in our strategy and confirms that geothermal heat infrastructure has matured into an investable infrastructure asset class capable of attracting long-term project finance,” Duijndam said.
“Together with Gaia Energy, we are building a platform that will accelerate the decarbonisation of Dutch greenhouse horticulture while supporting the wider heat transition in the Netherlands.”
85 Degrees combines the long-term infrastructure investment expertise of Foresight with the geothermal development, construction and operational capabilities of Gaia Energy, one of the Netherlands’ most experienced geothermal developers.
The senior debt facility refinances the platform’s existing bridge facilities and provides funding for the next phase of development of the Central Oostland geothermal heat network in the Netherlands.
It also establishes a financing framework designed to support the long-term growth of the 85 Degrees platform, with the flexibility to expand to up to €200mn over time as the development pipeline progresses.
The 85 Degrees platform is centred around geothermal developments in the Central Oostland region with the initial build-out of its heat network in Bleiswijk and Berkel and Rodenrijs and is designed to expand through additional geothermal projects as demand for sustainable heat grows.
By supplying reliable renewable baseload heat, the platform enables greenhouse growers to reduce dependence on natural gas, strengthen long-term security of supply and improve the sustainability and competitiveness of one of the Netherlands’ most important export sectors.
The financing reflects the growing confidence of the banking community in the long-term potential of geothermal.
Gino Schuur, Head of Sustainable Finance Business Banking NL, ING, said the financing demonstrates how the bank is supporting the energy transition in the Dutch greenhouse horticulture sector.
“By providing 34 growers with access to geothermal heat, we are helping reduce reliance on natural gas while supporting the long-term sustainability and resilience of their businesses,” said Schuur.
“The financing structure also creates opportunities for future expansion of the heat network and additional geothermal developments.”
The 85 Degrees Renewable platform is built around long-term contracted heat sales, creating stable, predictable revenues while delivering environmental benefits.
Independent assessment by Impact Institute in accordance with ISO 14067 confirmed that the operating geothermal assets deliver heat with a carbon intensity of only 24 gCO₂/kWh.Methane naturally produced with the geothermal water is utilised to generate electricity for on-site operations, while the resulting CO₂ is supplied to greenhouse growers for use in crop production.
According to the statement, beyond decarbonising heat demand, geothermal energy can also contribute to solving one of the Netherlands’ most pressing infrastructure challenges.
“By delivering renewable heat directly to end users, geothermal reduces the need for additional electricity demand that would otherwise result from large-scale electrification of heating. As a result, geothermal can help alleviate pressure on the electricity grid in regions where network congestion increasingly constrains sustainable economic development."