Silenos Energy obtains international project financing for Bruck geothermal power plant

• Financial close reached with international syndicate of banks consisting of Société Générale (Luxembourg) and Erste Bank Group (Austria)

• Geothermal projects involving heat extraction show great potential for the environmentally friendly energy transition

Silenos Energy Geothermie Garching a. d. Alz GmbH & Co. KG announces the completion of the project financing for the Bruck geothermal power plant. As the joint subsidiary of STRABAG SE and RAG Austria AG reports, it has succeeded for the first time to win over an international banking consortium as lender for a German geothermal project. Société Générale of Luxembourg and Erste Bank Group of Vienna will finance approximately 80 % of the total investment through a loan with a term of up to 20 years. The shareholders STRABAG and RAG continue to hold 50 % each in the company. The financial close was already reached in March, which highlights the economic attractiveness of this geothermal project in addition to the goal of long-term energy security and an efficient energy supply.

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The Bruck geothermal project in the so-called Molasse basin of Bavaria is already at an advanced stage. The two deep wells were successfully bored and tested in 2018 and 2019, and STRABAG Umwelttechnik GmbH of Dresden is currently building the approx. 5 MW power plant for the renewable energy supply of around 14,000 households in the region with additionally planned heat extraction for the municipality of Garching a. d. Alz. The facility is scheduled to be completed and put into operation in the fourth quarter of this year.

Silenos managing directors Christian Steinbauer and Oliver Friedlaender were very pleased with the completion of the project financing. Steinbauer emphasizes: “Geothermal energy with heat extraction is becoming increasingly important for an environmentally friendly energy transition in Germany and the reliable supply of private households and industrial companies with carbon-neutral energy. The potential here is recognized and seen as attractive within international banking circles. The feed-in tariffs under the Renewable Energy Act are still essential, however, for the profitable operation of such a plant in the Molasse basin. Silenos will continue to be committed to the development of follow-up projects in Germany.”