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| Dorfansicht Kirchweidach (Courtesy Geoenergie Kirchweidach GmbH) |
The German based Geoenergie Kirchweidach (GEK) and the Swedish clean tech company Climeon have today signed a non-binding Letter of Intent (LOI) covering a supply of Climeon Heat Power modules to a geothermal power plant project in the Municipality of Kirchweidach. The potential order value is estimated to be about 5 MEUR.
The LOI is based on Climeon’s patented Heat Power technology with record high efficiency in low temperatures that will utilize the excess heat of the geothermal plant that today delivers heat to a 20 hectares green house and the city of Kirchweidach, east of Munich in Bavaria. The owners of GEK have previously had a discrepancy in how to best develop the geothermal power plant. Now, with the solution proposed by Climeon, all parties have an aligned view on how to develop the geothermal asset. The parties are currently negotiating financing solutions. If financing is secured and the parties have agreed upon a final purchase order for a Heat Power system, a contract will be signed.