the most important thing is the comment by economic minister at the end.. Vulcan is nor relying on government funds. They said its good if they manage to get those but not banking on them to progress the project..

60 billion less for climate protection: What does that mean for geothermal energy?

November 17, 2023 | Politics | Karin Jehle

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The federal government moved 60 billion euros from unneeded Corona funds to the Climate and Transformation Fund (KTF). However, the Federal Constitutional Court has now decided that the reallocation of the funds is unconstitutional. Now the medium and long-term financing of many climate protection measures is suddenly in question. The Federal Geothermal Association e. V. (BVG) urgently appeals to the government in a press release to continue to provide the necessary funds for geothermal energy expansion.

The Karlsruhe judges argued that the supplementary budget violated the debt brake. The loans declared as special funds, which were intended to cushion the economic consequences of the corona pandemic, were taken out in an emergency. The federal government cannot simply reallocate these for climate protection. In addition, she only decided on the supplementary budget in 2022 - so too late. The CDU politician Christian Haase hadsued.

A whole range of important climate protection measures should be financed from the fund or have already been paid for from it: federal funding for efficient buildings (BEG) and efficient heating networks (BEW), purchase bonuses for electric cars, rail network expansion, the hydrogen economy, but also the establishment of the chip -Manufacturer Intel in Magdeburg.

The 60 billion euros from Corona aid were not the only funds in the climate and transformation fund. In total, funds amounting to 211 billion euros were set aside by 2027. However, it is clear that not all projects can be financed to the planned extent. “There is still enough money in the climate and transformation fund so that the ban by the Federal Constitutional Court will not lead to immediate problems,” said Marcel Fratzscher, President of the German Institute for Economic Research (DIW), on X, formerly Twitter. It will This means that prioritizations have to be made, which above all endangers medium and long-term planning security. The consequences for the energy transition and climateprotection can be dramatic.

Are geothermal energy exploration programs in danger?

The BEW, the BEG and exploration programs are relevant for geothermal energy. Especially as a technology that involves high investments and a not inconsiderable risk in the project development phase, geothermal energy needs support from funding policy.

“Following the ruling of the Federal Constitutional Court, the federal government must now quickly find a way to make the financing of the energy transition reliable and adequate.

In order to leverage the great potential of geothermal energy for the decarbonization of our heat supply, a secure funding framework is needed. The industry urgently needs planning security for its investment decisions,” said Helge-Uve Braun, President of the BVG in a press release.

The BVG further writes: “The fact that the financing of relevant funding programs such as BEW, BEG and EEW appears questionable in the future is leading to considerable uncertainty in the market, which will noticeably slow down the expansion of geothermal energy. There are also fears that there will no longer be any money available for crucial measures that are urgently needed to ramp up the technology, such as a deep underground exploration program. This would mean that the geothermal energy campaign presented by the federal government last year would be a waste of time. That is why the BVG calls on the government to guarantee the reliable provision of the financial resources necessary for geothermal energy expansion."

According to the BVG, Economics Minister Habeck (B90/The Greens) emphasized to the newspaper “Der Tagesspiegel” that all promised obligations would be met - this also applies to the support of geothermal energy projects and the expansion of district heating.