85 Degrees Renewable has closed a financing framework of up to €200 million with ING and Rabobank to support geothermal heating developments in the Netherlands. The facility creates a scalable funding platform for projects supplying renewable heat to greenhouse businesses and other customers.
The initial financing will support developments in the Central Oostland area, particularly around Bleiswijk, Berkel and Rodenrijs. The transaction is one of the clearest recent indications that established geothermal heat projects are attracting conventional long-term infrastructure debt.
Finance Targets Central Oostland Portfolio
85 Degrees is developing the projects alongside Dutch geothermal company Gaia Energy. The platform aims to supply locally produced heat to the Netherlands’ energy-intensive greenhouse horticulture industry.
Geothermal heat can replace part of the natural gas currently used to maintain controlled growing temperatures. This could reduce emissions and exposure to volatile gas prices while supporting the competitiveness of Dutch growers.
The financing framework provides capital for:
- Existing and planned geothermal wells
- Surface heat-production facilities
- Connections to greenhouse customers
- Development and construction expenditure
- Portfolio expansion beyond the first projects
- Long-term growth of the renewable-heat platform
Drilling Programme Reduces Subsurface
Five wells have already been drilled in the Bleiswijk project area. The first heat supply to connected customers is expected to begin soon.
Successful drilling is particularly important for geothermal finance because lenders must assess whether underground reservoirs can deliver sufficient temperatures and flow rates over the life of a project. Completed wells provide operational data that can reduce uncertainty and improve confidence in expected revenues.
The project structure shows how early geological risk can be separated from later-stage infrastructure financing. Once drilling results and customer contracts become clearer, geothermal heat begins to resemble other contracted energy assets.
“This financing represents much more than the successful closing of a debt transaction. It demonstrates the confidence that leading renewable infrastructure lenders ING and Rabobank have in our strategy and confirms that geothermal heat infrastructure has matured into an investable infrastructure asset class capable of attracting long-term project finance,” said Bart Duijndam, CEO of 85 Degrees Renewable.
Institutional Investors Back the Platform
85 Degrees is supported by Foresight Group through Foresight Energy Infrastructure Partners, which invested in the platform in 2021. The new debt facility adds bank financing from two major Dutch lenders.
This combination of sponsor equity and project debt can help the company develop several assets under a common financing framework rather than funding each site separately.
That portfolio approach may improve procurement, standardise project development and allow capital to be deployed more quickly as new sites reach construction readiness.
Geothermal Heat Gains Infrastructure Status
The transaction’s wider importance lies in how lenders are assessing geothermal heat. Historically, subsurface uncertainty made geothermal projects difficult to finance using conventional debt.
The €200 million framework suggests that well-developed projects with proven drilling, established partners and identifiable customers can attract large-scale project financing.
For the Netherlands, the facility supports the decarbonisation of greenhouse horticulture and regional heat systems. For the geothermal industry, it provides a financing model that could help transform individual projects into a repeatable renewable-heat infrastructure platform.
