Geothermal partnership

German energy group

has announced a joint venture with

to develop, plan and construct a range of geothermal power stations.

The initial phase of the project will see specialists in geothermal drilling, Daldrup & Söhne, work alongside RWE Innogy to develop its existing deep geothermal drilling areas. Plans are also in place for the companies to participate with other geothermal and development companies to extend their work in Germany and the rest of Europe.

The geothermal facilities that will be developed by the two partners are to be operated by independent project companies. The joint venture remains subject to approval by the German antitrust authority, Bundeskartellamt.

Prof Fritz Vahrenholt, chairman of the board of directors at RWE Innogy, said: ‘The use of geothermal heat for the production of electric power and heat has great potential, not just in Germany, but also in southern and south eastern Europe. This joint venture enables us to ensure the systematic development of a relatively young form of energy in our latitudes and to use this energy on a major technical scale.’