Geothermal energy - unleash its potential
Tailored Exploration Risk Insurance for decision makers and investors.
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Considerable investment will be required to plan and execute exploratory drilling and develop new geothermal wells by 2030. Geothermal energy, while promising, carries several technical risks that can deter investors. If the geothermal reservoir fails to produce sufficient output, the investment is lost, making financing unpredictable and challenging.
With up to 4,000 wells needed by 2030 in Germany only, municipalities and operators require a reliable, experienced partner to assess and mitigate the risks. Munich Re`s specialized technical experts have over 20 years of experience in geology and exploration and are continuously expanding their expertise in this complex field.
Exploration Risk Insurance
Munich Re`s specialized technical experts with over 20 years of experience in geology and exploration support you in covering the resource risk:
Cornerstones of Exploration Risk Insurance (ERI)
- Coverage of the insured thermal yield
- Sum insured equals the costs of drilling
- Dynamic adjustment to rising costs
- Coverage for drilling simulation also available
How you will benefit:
as an investor
Your geothermal energy investments will be safer and more attractive as the ERI minimizes risks, ensuring more secure and plannable investments.
as an operator
Operators can attract investors more effectively, as Munich Re assumes the risk of unsuccessful exploration. This enables confident launching of ambitious projects. There will be a close cooperation between project leaders, consultants, and insurers.
When drilling, there is always a risk of hitting dry ground - we can shoulder that risk and reassure investors.
