Improved regulatory framework for the geothermal market supports the heat transition and underpins Daldrup & Söhne AG’s business model

Improved regulatory framework for the geothermal market supports the heat transition and underpins Daldrup & Söhne AG’s business model

Pullach / Ascheberg, January 20, 2026 – The German geothermal market enters 2026 with strong prospects. In December 2025, the German Bundestag passed the Geothermal Acceleration Act (Geothermiebeschleunigungsgesetz, “GeoBG”). In addition, geothermal operators can now more comprehensively mitigate drilling risks through the KfW geothermal financing instrument with integrated exploration risk insurance.

"We expect geothermal energy in Germany to benefit significantly from both instruments in the medium to long term. Projects cannot only be implemented more quickly but will also become more predictable and more attractive due to lower financial risks for project developers. This could be reflected in a significant increase in demand for geothermal projects, in a range of 100 to 200 percent, by 2030," said Andreas Tönies, CEO of Daldrup & Söhne AG.

The objective of the GeoBG adopted by the German Bundestag is to make permitting and planning procedures for geothermal projects clearer, more reliable, and more predictable. Key elements include the classification of geothermal energy as being of “overriding public interest” as well as the introduction of binding processing deadlines. Planning and permitting procedures for geothermal projects will be comprehensively digitalised, simplified, and accelerated. For example, the relevant authority must now decide on an application within 12 months. Such statutory time limits had not previously been defined. For geothermal projects with a capacity of up to 50 MW, the approval period may even be reduced to three months. In this way, the legislation addresses key structural factors that have in the past contributed to lengthy project timelines and increased uncertainty in project development.

In addition, the launch of the KfW financing instrument with integrated exploration risk insurance for geothermal drilling took place end of December 2025. The instrument was developed by KfW in cooperation with Munich Re and the Federal Ministry for Economic Affairs and Energy (Bundesministerium für Wirtschaft und Energie). It supports the financing of geothermal drilling projects in Germany at depths of 400 meters or more through low-interest KfW loans, while at the same time covering the exploration risk associated with these drillings. Investors such as municipalities and local authorities can thus reduce the financial risk of a non-productive or insufficiently productive well by up to 100 percent of the eligible costs. This relieves project operators and further enhances incentives to invest in geothermal energy.

"GeoBG and the KfW geothermal financing instrument with integrated exploration risk insurance, together with the Federal Funding for Efficient Heating Networks (Bundesförderung für effiziente Wärmenetze, BEW), form a strong package that provides significantly greater planning and financing certainty within the geothermal market and supports the heat transition. This expected development confirms the strategic positioning of Daldup & Söhne AG and provides a solid base of our forecasted growth”, Andreas Tönies added.

Further information on the Geothermal Energy Acceleration Act (GeoBG) and the KfW geothermal financing instrument with integrated exploration risk insurance can be found at
Deutscher Bundestag - Bundestag stimmt Geothermie-Beschleunigungsgesetz zu
New promotion of deep geothermal plants for municipal heat supply | KfW
 

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About Daldrup & Söhne AG

Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a company history of more than 75 years, is a specialised provider of drilling and environmental services and is positioned among the leading companies in Germany. Its activities are divided into the business areas Geothermal, Resources & Exploration, Water Extraction and Environment, Development & Services (EDS). In the Geothermal Energy business sector, drilling services are provided both for near-surface geothermal energy (especially geothermal probes for heat pumps), but above all also drilling services for deep geothermal energy of up to 6,000 m, in order to use the geothermal energy thus accessible for the generation of electricity and/or heat. In the Raw Materials and Exploration business sector, the wells drilled by Daldrup & Söhne AG are used for exploration as well as mineral raw materials and ores (e.g. copper and gold). This division also provides drilling services in the context of finding a safe final repository for nuclear waste. The Water Extraction business area includes well construction for the extraction of drinking, industrial, medicinal, mineral, boiler feed or cooling water as well as thermal brine. The business area Environment, Development & Services (EDS) comprises special environmental engineering services such as the hydraulic remediation of contaminated sites, the construction of gas extraction wells for the extraction of landfill gas, the construction of groundwater quality measuring points or the construction of water purification plants.

The shares of Daldrup & Söhne AG are listed in the Scale (sub-segment of the Open Market of the Frankfurt Stock Exchange) and part of the Scale30 Index.

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Press & Investor Relations Contact

Daldrup & Söhne AG

Annette Kohler-Kruse / Frank Ostermair
Fon: +49 (0) 2593 / 95 93 29
E-Mail: ir@daldrup.eu

Emil-Riedl-Weg 6
82049 Pullach im Isartal
www.daldrup.eu