German municipal utilities Stadtwerke Muenchen (SWM) and Erdwaerme Gruenwald (EWG) have formed a joint venture to build a new geothermal plant near Munich, tapping on the region's deep geothermal energy potential.
The new plant should be set up in the municipality of Gruenwald, about 12 km southwest of Munich, to meet the increasing demand for district heating in Gruenwald and the municipality of Unterhaching and support the green transition in Munich's heat supply.
The exploration of the underground has already been completed and a contract for a feasibility study has been awarded, SWM said on Friday.
SWM and EWG will partner also on the construction of the necessary transport lines between the plants and networks.
The two municipal companies have been partners for years and have already developed eight geothermal projects south-east of the Bavarian metropolis that supply district heating to thousands of households, companies, schools and municipal buildings in the region.
Commenting on the extended cooperation, EWG's managing director Andreas Lederle said that geothermal plants should line up like a string of pearls to ensure a safe and reliable supply of heat for the people in the region independent of fossil fuels.
SWM is currently planning to build another geothermal plant on the area of the Michaelibad in the southeast of Munich that will supply heat to about 75,000 people.
Choose your newsletter by Renewables Now. Join for free!