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EU’s largest geothermal district heating plant begins operations in Aarhus, Denmark

EU’s largest geothermal district heating plant begins operations in Aarhus, Denmark

News • October 31, 2025

Aarhus, Denmark, has taken a major step toward sustainable heating: the first geothermal heat is now flowing into homes from what will become the largest integrated geothermal district heating system in the European Union.

Developed for Danish utility Kredsløb by the geothermal company Innargi, the geothermal plant taps into hot water reservoirs located 2.5 kilometres beneath the surface. This heat is distributed through the city’s district heating network, serving 330,000 residents. Once fully operational by 2030, the system will supply around 20% of Aarhus’ heating needs.

“This is a landmark moment. Not only for Aarhus, but for Europe. We’re proving that geothermal energy can be scaled to serve entire cities. It’s local, renewable, and always available. And it’s a key piece in the puzzle to decarbonise heating across the continent.”

Samir Abboud

CEO of Innargi

Innargi and Kredsløb opening the heat in Skejby, Aarhus
Geothermal plant Skejby

A model for Europe’s heating transition
Geothermal energy is one of the world’s four major renewable sources, alongside solar, wind, and hydropower. Yet in much of Europe, it remains largely untapped. According to the European Commission, geothermal has the technical potential to cover up to 45% of heating demand in European district heating networks.

Innargi is built on the expertise earned from many years in the oil and gas industry, and the Aarhus project demonstrates how that expertise can help unlock the potential of geothermal energy for district heating.

“This is not just a Danish success story,” says Bjarne Munk Jensen, CEO of Kredsløb. “It’s a blueprint for how cities across Europe can reduce dependence on imported biomass and fossil fuels, while improving energy security and affordability. By tapping into energy close to home, we become less vulnerable to global supply shocks.”

Bjarne Munk Jensen

CEO of Kredsløb

A scalable, low-carbon solution
The Aarhus plant is the first of several geothermal facilities planned by Kredsløb and Innargi, with a total expected capacity of at least 102 MW. The initiative supports Aarhus Municipality’s goal of becoming CO₂-neutral by 2030 and is part of a broader shift toward electric-based heating systems, including heat pumps and waste-to-energy with carbon capture.

“Geothermal heat is incredibly efficient,” Bjarne Munk Jensen adds. “It requires very little electricity to produce large amounts of stable heat. That makes it a perfect complement to other renewable technologies.”

The sandstone layers beneath Aarhus, once beaches for dinosaurs 200 million years ago, now hold the key to a cleaner, more resilient energy future.

Geothermal plant Skejby

ABOUT AARHUS, SKEJBY, AND THE PARTNERS OF THE PROJECT

THE FUTURE OF DISTRICT HEATING IN AARHUS
Aarhus is Denmark’s second-largest city and a frontrunner in green urban development. With 330,000 residents, the city has one of Europe’s largest district heating networks and aims to become CO₂-neutral by 2030.

ABOUT INNARGI
Innargi A/S was founded in 2017 by A.P. Møller Holding and is now owned by A.P. Møller Holding, ATP and NRGi. The company’s mission is to decarbonize district heating by unlocking geothermal energy as a source of heat for millions of homes. Innargi brings together a highly experienced team of geologists, reservoir, facilities, and drilling engineers, and works in close partnership with district heating experts. In addition to Aarhus, Innargi is developing geothermal projects in other parts of Denmark, as well as in Poland and Germany.

ABOUT KREDSLØB
Kredsløb is a municipally owned utility company in Aarhus, responsible for district heating, waste management and recycling. It supplies district heating to 330,000 people and recycles waste from 170,000 households in Aarhus Municipality. Kredsløb has a clear ambition: to make it easy for customers and partners to contribute to the green transition.