Cindrigo (CINH) has secured an extension of German federal funding eligibility for two of its geothermal licence areas, while a third has gained approval for the first time, strengthening support for the company’s renewable heat development plans in Germany.
The company said BAFA BEW Module 1 funding eligibility for the Eich and Worms licence areas has been extended until February 2027, while the Weinheim licence area has now been approved under the same programme for the first time. The scheme can cover up to 50% of eligible pre-development costs, capped at €2 million per licence. To date, Cindrigo has incurred about €300,000 in qualifying expenditure.
Meanwhile, work continues on the Heat Demand Feasibility Study for the Eich licence area, a key step toward potential access to BAFA BEW Module 2 funding. Under the current framework, this support could cover up to 40% of eligible project costs, up to a maximum of €100 million, for the construction or expansion of renewable district heating infrastructure.
Cindrigo holds an 85% interest in the Eich, Worms and Weinheim geothermal licences in Germany’s Upper Rhine Valley. Collectively, the licence areas cover about 125 square kilometres and have the potential to support about 300 MW of district heating and electricity generation, alongside possible future lithium extraction from geothermal brine, subject to further funding and development progress.
Cindrigo’s Chief Executive Officer Lars Guldstrand said: “Germany is actively encouraging the development of renewable district heating infrastructure, and the BAFA-administered BEW programme forms an important part of that strategy. The extension of BEW Module 1 eligibility support for Eich and Worms, together with the first-time approval for Weinheim, highlights the continued commitment of the German state to supporting the development of renewable district heating infrastructure which aligns strongly with the development of our geothermal interests.
“These programmes are designed to support the early-stage technical and feasibility work required to develop large-scale renewable heat networks. Importantly, they significantly reduce the pre-development costs across each licenced area and help reduce project risk as the projects move through the exploration and planning phases.
“Work on the Heat Demand Feasibility Study for Eich is also progressing well. This represents an important step toward potential eligibility for BEW Module 2 support, which is focused on the future construction and expansion of renewable district heating infrastructure.
“Germany remains one of the most supportive geothermal markets in Europe and we believe our licenced interests are well positioned as the country continues to accelerate the transition toward secure, renewable energy and low-carbon heat networks.”
View from Vox
Cindrigo’s German geothermal portfolio continues to benefit from a supportive regulatory and funding environment, which is a meaningful advantage for an early-stage developer. The extension of existing support and first-time approval for Weinheim reinforce momentum across the portfolio, while progress toward Module 2 eligibility could unlock substantially larger funding support. As the company builds momentum, it appears well-positioned to benefit from Germany’s accelerating push for renewable heat infrastructure.