New regulations pave the way for geothermal projects in Denmark

Today is a great day for geothermal district heating in Denmark. All the parties in the Danish Parliament voted in favor of a new pricing regulation on geothermal energy which is going to aid new geothermal projects. The regulation is balancing the need for protecting both the consumers and the district heating companies from the risks related to the subsurface and the need for long term stable framework conditions, so geothermal companies can make the necessary and large upfront investments.

Great potential and great projects

The process of developing the new regulations has already kickstarted a lot of activity in Denmark, bringing the large renewable energy source into play without any economic subsidies. Among these, our flagship project in Aarhus stands out as the largest geothermal heating plant in the EU. If everything goes to plan, the geothermal heating plants will deliver about 20% of the district heating need in Aarhus before the end of 2030, and geothermal heating is estimated to be able to cover about 15-20% of the entirety of Denmark’s heating needs.