Inter-municipal heating network in Munich district, Germany to expand capacity

AFK Geothermie facility in Aschheim, Bavaria, Germany (source: AFK Geothermie)

Carlo Cariaga 10 Feb 2026

After years of challenges due to funding, the geothermal heating capacity of inter-municipality company AFK Geothermie GmbH in the Munich district in Germany will soon be expanded with the drilling of a second doublet and construction of a second heating plant. Construction and drilling are both expected to start in 2026, with the new plant targeting operations by mid-2027.

The geothermal company AFK GmbH was founded in 2008 by the communities of Aschheim, Feldkirchen, and Kirchheim in Eastern Munich. It is currently supplying 1600 customers across all three communities with geothermal heat. However, the AFK had already reached its capacity limit in recent years due to increasing demand.

Moreover, the utility is aiming to increase the contribution from geothermal in the energy mix from the current two-thirds to about 90%. The current setup has caused high heating costs due to the sharp increase in gas prices, causing criticism from the customers of AFK.

According to AFK Managing Director Martina Serdjuk, the expansion will allow an additional 1200 households and businesses to be connected to the heating network. The long-term plan is for the heat supply to come from 100% renewable sources by 2045. To enhance transparency and community engagement, the geothermal plant will also be opened for guided tours in the future.

Aspirations slowed down by funding issues

The company had long expressed its intent to increase its heating capacity, appealing for federal and state subsidies back in 2022. However, the Free State of Bavaria has not made the funding support by 2024. Despite the setback, the company was determined to continue with the expansion project by considering external financing. The project is expected to cost a total of EUR 50 million.

Thanks in part to improved funding and political conditions, the AFK has now secured EUR 20 million in subsidies and another EUR 25 million in loans. The remaining EUR 5 million will come from the municipalities.

“We are on a very good path,” said Andreas Janson (Independent Voters’ Association), mayor of Feldkirchen and current chairman of the AFK supervisory board. He also expressed gratitude to the founders of AFK for their vision. “Now it is up to us to continue to bring this treasure to the surface in the best possible way.”

Source: Tiefe Geothermie and Süddeutsche Zeitung