French Minister of Ecology, Sustainable Development and Energy Ségolène Royale has announced the creation of GEODEEP, a new EUR 50-million risk insurance fund dedicated to deep geothermal energy. This is a move that will be welcomed by the geothermal community, as coverage of geological risk is seen as critical for attracting the required investment to the industry.

In a statement issued on March 30, the minister said that the fund aims to protect project operators against the geological risk faced during the exploration and exploitation phases of their work. Jointly financed by ADEME (a public institution managed by the Ministry), La Caisse des Dépôts (a public investment bank), and by private operators, GEODEEP will compensate project operators should they fail to find economically sustainable geothermal resources.

GEODEEP will facilitate investment decisions by project operators by significantly reducing the risk profile of deep geothermal projects. The fund is also expected to ensure the opening of ten new deep geothermal plants, and the creation of more than 800 new jobs.

The minister said that, by launching GEODEEP, the French government is clearly demonstrating its commitment to fostering the development of renewables and proves the key role that geothermal will play in achieving the energy transition towards a low-carbon economy.

For more information
http://www.developpement-durable.gouv.fr/IMG/pdf/2015-03-30_Creato_GEODEEP_geothermie.pdf