To the attention of: Commission President Von der Leyen, Commissioner Jorgensen, Commissioner Hoekstra, Commissioner Ribera, Commissioner Séjourné

CC: Heads of State, Council President Costa

Europe faces yet another grave energy crisis. Still reliant on fossil fuel imports vulnerable to supply disruption, Europe urgently needs to strengthen its energy security and decarbonise, all the while lowering energy prices for citizens and industry, and meeting growing electricity demand. The only way out of this predicament is to rapidly deploy domestic clean electricity and heat. 

Europe’s geothermal energy potential is massive, and advances in next-generation systems can unlock far greater potential across much of the continent. They alone could generate 301 TWh of electricity in the EU annually – equivalent to roughly 42% of EU coal- and gas-fired generation. Geothermal can fast-track industrial decarbonisation, support grid stability and replace imported natural gas across heating and power – the Achilles heel of Europe’s energy system. Geothermal resources also enable domestic production of critical raw materials such as lithium, strengthening Europe’s strategic autonomy. What’s more, geothermal systems are largely underground and distributed, making them harder for adversaries to attack.

This is not a niche resource, but a system-scale opportunity that can benefit the wider European industrial supply chain, including by repurposing oil and gas expertise, infrastructure and jobs. Global competitors have understood this and are moving ahead at full speed: the United States is deploying significant public funding and supporting first-of-a-kind projects to accelerate next-generation geothermal, while China is massively scaling deployment – often using European expertise. Without rapid action, Europe risks continued fossil dependence, loss of industrial leadership, and missing another strategic window to scale clean industry.

The European Commission’s intention to publish a Geothermal Action Plan in May is a timely recognition that geothermal must play a greater role in Europe’s energy system. However, without significantly greater ambition, the plan risks focusing too narrowly on heat, failing to kick-start a significant market, and leaving geothermal treated as a secondary priority. We urgently call on the Commission to significantly strengthen the ambition of this plan, demonstrate its political determination to prioritise this, and put Europe in a position to lead the geothermal revolution.

Geothermal energy in Europe is not constrained by technology – Europe is a world leader in geothermal technologies and has the skills needed for a geothermal revolution. The real challenges are insufficient political support, translating into critical gaps in financing, risk-sharing and market design. In particular, the cost and risk profile of initial drilling remains the primary bottleneck to scaling deployment. The absence of dedicated de-risking instruments means developers cannot absorb early-stage exploration and drilling risks, preventing otherwise viable projects from reaching financial close and becoming bankable at scale. Second, the lack of long-term revenue frameworks limits demand visibility, slowing investment. Third, complex permitting, land-use and grid connection create bottlenecks for deployment.

We urge the European Commission to make the upcoming Geothermal Action Plan not just another strategy, but a real investment catalyst, supported by clear political prioritisation for heat and power generation – including through a dedicated, stand-alone, high-profile Communication. This means:

We stand ready to work with the European Commission to help deliver this opportunity – investing, innovating and building the projects that will underpin Europe’s clean, secure and competitive energy future.

Yours sincerely,

1.5°Ventures
Agila Renewable Energy Resources Ltd.
alfa8
Baseload Capital
Bentley Systems | Seequent
BRYCK Startup Alliance
BVEG | Bundesverband Erdgas, Erdöl und Geoenergie e.V.
CAPHENIA
Carbon Equity
Catalyse Europe
Clean Air Task Force (CATF)
Cleantech for Europe
Cleantech for Nordics
ENNA Geo d.o.o.
Eavor Technologies
EUREC
EUTurbines
everox
Extantia
Factor2 Energy
Fishbones AS
Future Cleantech Architects (FCA)
GA Drilling
GEL
Geoenergía | Spanish Geothermal Association
Geothermal UK
Geothermie Schweiz
Goldminco Ltd. – Goldminco Investment Plc.
Hades
JBG
Jordkraft Energy
Junction Growth Investors
Kiko Ventures
kopa ventures
Lita
Marble
Marriott Drilling Group
Micro Thermal Energy
NeoCarbon
Nordic Alpha Partners
Planet A
PW Energy, a.s.
RML Ltd
ROTAQUA Ltd.
Rubio VC
Samorka, Icelandic Energy and Utilities
Siemens Energy
SLB
Solar Impulse Foundation
Steam S.r.l.
Submer
Svenskt Geoenergicentrum (The Swedish Geoenergy Center)
Tech for Net Zero
Telura
TiLT Capital Partners
Turboden Spa – MHI
Underground Ventures
Urban Impact
Vidia Equity
Vulcan Energy
Wermuth Asset Management
Women in Climate Tech
World Fund
World Fund
Zero Carbon