en.Wedoany.com Reported - German company Herrenknecht Vertical and regional energy utility Badenova are planning to establish a joint venture to jointly develop geothermal heating projects, starting with a planned geothermal development project in Hartheim, southwestern Germany.
Representatives from both companies confirmed in statements to local media that discussions have entered an advanced stage. The Badenova board is expected to review the proposed cooperation later this month. The Hartheim project aims to provide renewable heat to approximately 20,000 people in the Freiburg region of the Upper Rhine Valley in southwestern Germany, with drilling planned to begin in 2027 and heat supply targeted for 2029 to 2030.
The Hartheim project, planned as the first joint development, is expected to require an investment of around €60 million (approximately $69 million), covering drilling, construction of a heating plant, and the necessary district heating infrastructure to connect the resource to the city of Freiburg. The site was selected by Badenova following geological exploration work, which identified favorable reservoir conditions while ensuring sufficient distance from residential areas and protected groundwater zones. The two companies are also considering other geothermal opportunities in the Lörrach region, near the Swiss border.
The proposed partnership reflects a broader evolution in Herrenknecht's geothermal strategy. The company, globally recognized as a leading manufacturer of tunnel boring machines, has steadily expanded its geothermal business through its subsidiary Herrenknecht Vertical over the past two decades. It launched its first dedicated geothermal drilling rig in the late 2000s and has since developed drilling technology for deep geothermal projects, including compact rigs designed specifically for urban environments.
Recently, Herrenknecht has also expanded its technology portfolio by developing specialized seismic exploration vehicles aimed at improving geothermal resource exploration in Germany and other markets. In 2026, the company received the European Geothermal Innovation Award at the GeoTherm trade fair in Germany. Additionally, the company acquired a stake in drilling contractor H. Anger's Söhne (Anger & Söhne) in 2023 and established a partnership with French geothermal developer Arverne in 2024.
The proposed cooperation with Badenova appears to be another step in the company's evolution. Under this proposed partnership, Herrenknecht would not only provide drilling equipment but directly participate in geothermal project development and share in the long-term value generated by the assets for both companies and the energy transition in its home region. Badenova CEO Dirk Sattur noted that the cooperation aims to combine Herrenknecht's drilling expertise with Badenova's experience in developing and operating energy infrastructure. Herrenknecht founder Martin Herrenknecht has long been a strong advocate for geothermal energy, and the company has been promoting the expansion of geothermal development in Germany for decades.
This development and partnership are significant as Germany continues its efforts to decarbonize the heating market and seek alternatives to fossil fuel heating. Collaborations that combine industrial and engineering capabilities with experienced utility companies could become a viable model for accelerating geothermal deployment. For the German geothermal industry, this proposed joint venture may also signal increased confidence from established industrial companies that geothermal heating projects are becoming investable infrastructure, rather than just engineering contracts.
