alfa8 Colab Limited (“alfa8”) and TerraThermo Limited (“TerraThermo”) are pleased to announce the signature of an Investment Agreement whereby alfa8 will invest in TerraThermo and the development of Projekt Thermo (the “Investment”).
Projekt Thermo is the development of a 12MW geothermal power plant in Lower Saxony, Germany and, subsequently, the development of large scale deep geothermal power generation and energy storage projects in Europe.
The Investment provides for:
• up to €1m in working capital, to advance Projekt Thermo to financial close; and
• up to €32.5m in future financings for Projekt Thermo, subject to certain conditions.
TerraThermo is in discussions with the European Investment Bank EIB on a potential parallel investment to fund up to €32.5m for Projekt Thermo (in addition to alfa8’s financing).
TerraThermo will use the alfa8 working capital to undertake technical and financial due diligence on the project, with the intention of reaching financial close in Q4 2024/Q1 2025.
As previously announced by ZeroGeo Energy, the first stage of Projekt Thermo is to develop a 12MW “Hot Dry Rock” geothermal power plant in Lower Saxony, Germany. It would be the first of many deep geothermal power generation and energy storage projects in Europe developed by TerraThermo.
John Ashbridge, CEO of TerraThermo, stated: “We are extremely pleased to have alfa8 as an investor in TerraThermo given their focus on “first of a kind” technology and our matching visions and expectations of what can be achieved in the geothermal energy industry in the coming years. We look forward to working with alfa8 to deliver Projekt Thermo.”
Erin Glen, COO of alfa8, stated: “TerraThermo is focussed on delivering a first of a kind, deep hot dry rock geothermal project in Europe. We are excited to team up with them to accelerate the development of geothermal technology in Europe. At alfa8 we are on a mission to deploy catalytic capital into the energy transition and promising first of a kind technologies that can accelerate the path to net-zero.”
