Munich Re is joining the German Federal Ministry for the Environment and the KfW Bankengruppe in launching a credit program for the expansion of geothermal power in Germany.
Together, they have designed the credit program to minimize the productivity risk of the projects and made available the sum of EUR60 million ($76.5 million U.S. at the current exchange rate). High drilling costs and the risk of not making a find are the main deterrent to potential investors in geothermal projects, the German-based reinsurer said in a statement.
Geothermal heat offers an inexhaustible source of energy, and Germany has three regions that are considered suitable for geothermal projects, Munich Re said. The company said this is not the first time it has participated in geothermal projects, providing productivity risk insurance when the nation's biggest geothermal power plant was erected.
Thomas Blunck, a member of Munich Re's board of management, said in a statement, “With our expertise as a risk carrier, we can make a significant contribution toward lessening the often very special uncertainty factors.”
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