Potsdam, Germany signs EUR 375 million loan agreement for geothermal heating project
Rig at Potsdam geothermal project in Germany by EWP (source: YouTube screenshot / SWPPotsdam)
Carlo Cariaga
29 Jul 2025
The utility company of Potsdam, Germany has signed a EUR 375 million loan for a geothermal heating project to transition from the current gas-fired facility.
Municipal utility company Energie und Wasser Potsdam (EWP) has signed a loan agreement with a banking consortium for a loan with a total amount of EUR 375 million. This represents one of the biggest investments in the company’s history, and will go towards a project that will transition the heating supply in Potsdam, Germany to geothermal energy.
The focus of the project is the replacement of the current gas-fired combined heat and power plant (CHP), and the transition to a more decentralized and renewable energy supply. The existing CHP is aging and is expected to reach the end of its life in a few years.
In 2023, EWP successfully completed the drilling of two test wells in Heinrich-Mann-Allee. The output from the production well was better than expected, at about 4 MW. Based on the average Potsdam household, the future geothermal heating plant on this site can provide heat for up to 5,000 households.
The city of Potsdam has set a goal of reducing greenhouse gas emissions by 95% by 2050. As part of the heat transition, the city is expecting to make a total investment of up to EUR 1.3 billion.
Source: Tagesspiegel and rbb24
