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Geothermal energy - unleash its potential
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Geothermal energy - unleash its potential

Tailored Exploration Risk Insurance for decision makers and investors.

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    Geothermal will play a vital role in the energy transition, particularly in municipal heat supply and industrial heating. With global energy demand rising, geothermal energy's share in Europe's energy mix is expected to grow significantly.
    25% by 2040
    According to Fraunhofer Institute, geothermal energy should be expanded to account for 25% of Germany’s heating energy by 2040.

    Considerable investment will be required to plan and execute exploratory drilling and develop new geothermal wells by 2030. Geothermal energy, while promising, carries several technical risks that can deter investors. If the geothermal reservoir fails to produce sufficient output, the investment is lost, making financing unpredictable and challenging.

    With up to 4,000 wells needed by 2030 in Germany only, municipalities and operators require a reliable, experienced partner to assess and mitigate the risks. Munich Re`s specialized technical experts have over 20 years of experience in geology and exploration and are continuously expanding their expertise in this complex field.

    Exploration Risk Insurance

    Munich Re`s specialized technical experts with over 20 years of experience in geology and exploration support you in covering the resource risk: 

    Cornerstones of Exploration Risk Insurance (ERI)

    • Coverage of the insured thermal yield
    • Sum insured equals the costs of drilling
    • Dynamic adjustment to rising costs
    • Coverage for stimulation measures also available

    How you will benefit: 

    as an investor

    Your geothermal energy investments will be safer and more attractive as the ERI minimizes risks, ensuring more secure and plannable investments. 

    as an operator

    Operators can attract investors more effectively, as Munich Re assumes the risk of unsuccessful exploration. This enables confident launching of ambitious projects. There will be a close cooperation between project leaders, consultants, and insurers.

    Patrick Hinze
    When drilling, there is always a risk of hitting dry ground - we can shoulder that risk and reassure investors.
    Patrick Hinze
    Head of Emerging Green Tech
    We provide cover to clients or support projects that receive financial assistance from the KfW banking group or insure projects directly in certain well developed areas.
    Talk to our experts
    Hinze Patrick
    Patrick Hinze
    Head of Emerging Green Tech
    Dr. Christian Merz
    Financial Underwriter
    Matthias Tönnis
    Matthias Tönnis
    Underwriter, Geologist