Sweco Group, a European architecture and engineering consultancy, is building up its geothermal prowess to add to its existing renewable energy capacities.
The company recently announced the acquisition of VHGM, a small Dutch firm specialised in geothermal energy consulting.
It will add net sales of SEK 22mn (US$2.3mn) plus around 22 experts to the group, a Sweco statement noted.
As well as geothermal, VHGM is also active in the aquathermal space, the sustainable heating and cooling of buildings by extracting heat and cold from surface water, wastewater or drinking water.
Because the Netherlands consists of a fifth of surface water, aquathermal is potentially deemed a major source for a sustainable way of heating and cooling homes and buildings.
The acquisition also follows news of Sweco signing a new framework agreement with Rijkswaterstaat, the Dutch government agency responsible for the modernisation and development of infrastructure and water management.
This entails providing engineering services for renewal projects over the next four to six years, to support major upgrades of primary infrastructure in the Netherlands.
In its recent Q3 results, Sweco reported “good demand” across the energy, infrastructure, water and environment segments of its business.
The interest in geothermal ties up with Sweco’s other areas of business, with a focus on clean, advanced infrastructure development.
One of the flagship engineering projects acquired during Q3 is the design of Finnish food company Fazer’s future chocolate factory in Lahti, which will operate without direct carbon dioxide emissions.
“Projects won during the quarter highlight Sweco's role in future-proofing societies and industries,” said Åsa Bergman, Sweco CEO, in a Q3 call with investors.
Sweco also announced a number of other acquisitions in Q3, including Fimpec Group, a Finnish consultancy that employs around 400 experts, with specialist capabilities in renewable energy, hydrogen, the bio- and circular economy, forest industry, batteries and critical minerals.
It also moved for Belgian consultancy, assar architects, a leading firm in large-scale public and private sector projects, including offices and commercial buildings, healthcare, defence, education and urban planning.
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The Renewable Energy Association (REA) and Geothermal Energy Advancement Association (GEAA) have announced plans to create a new, dedicated platform within the REA — the Geothermal Energy Forum (GEF) — to help drive growth in the sector.
Both organisations have agreed Heads of Terms for the acquisition of GEAA by the REA which it is hoped will be completed by the end of the year.
In a statement, REA said the strategic acquisition marks a “major step forward” for the UK’s geothermal sector.
“By bringing GEAA’s expertise and membership into the REA, the Geothermal Energy Forum will help unify the industry’s voice and strengthen engagement with government, policymakers and key stakeholders – accelerating the growth of geothermal energy in the UK,” the statement read.
GEAA has been one of the key geothermal bodies, and the only UK trade association solely dedicated to geothermal energy.
Its integration into the REA reflects growing confidence in the sector and in the REA’s role in helping to galvanise movement in this market.
"This move establishes a powerful new platform to help unlock the UK’s exciting geothermal potential,” said Trevor Hutchings, CEO of the REA.
“Whether that’s for clean sources of heat for homes and businesses, or new low carbon power generation – geothermal has an important and currently under-valued role to play.”
He added: “I am determined that by the REA and GEAA coming together in this way we can ensure that geothermal energy plays a key role in the UK’s journey to greater energy security, energy sovereignty, local jobs and lower emissions.”
Karl Farrow, Founder and CEO of CeraPhi Energy, and Chair of GEAA, highlighted how far the industry had moved in just a few years.
“We started GEAA over a kitchen table in the midst of Covid nearly five years ago, at that time there was no designated UK voice for geothermal. We have slowly built a framework around a group of passionate individuals and organisations – big and small from academia to industry – who have come on that journey with us, building GEAA into a solid membership base and internationally recognised association,” Farrow said.
“We now need a ‘bigger table’ and evolving GEAA into the geothermal arm of the REA as the Geothermal Energy Forum is a natural next step for GEAA and its members.”
Industry players have also been broadly supportive of the coming together.
“This sort of coalition building is critical for the UK geothermal sector,” said Ross Glover, CEO of Star Energy. “We are excited to play our role in the Geothermal Energy Forum and actively participate in shaping key policy engagements with the government.”
That sentiment was shared by Karen Spenley, UK Country Manager of Celsius Energy.
“It’s encouraging to see the REA acknowledge the need for the geothermal sector to find a unified voice to grow and thrive,”said Spenley. “As an underutilised energy source in the UK, we look forward to seeing how the GEF drives awareness, investment and policy development across all aspects of geothermal energy, enabling it to play a greater role in energy resilience and decarbonisation.”
Jon Gluyas, Board Member, National Geothermal Centre (NGC), also welcomed the news.
“It will strengthen and deepen the already great relationship between the NGC and the REA, and together we will continue to support the nascent UK geothermal industry and advocate for appropriate policies from government to improve energy security, energy sustainability and energy equity.”
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