‘Financial close’ achieved

Netherlands: Trias Westland starts with second geothermal heat source

The realization of the second geothermal heat doublet Trias Westland has been completed. With securing the financing for this doublet and the expansion of the heat network, the first contracts with the drilling company, contractors and suppliers have been signed.

The greenhouse horticulture companies associated with Trias Westland that were unable to use the heat from the first doublet now also have access to sustainable heat through this development. The expansion of Trias Westland offers a significant increase in sustainability for Westland greenhouse horticulture, comparable to the gas consumption of around 15,000 households. The step follows the start of production with the first doublet on July 15 of this year.

Preparation works for the realization of the second geothermal heat doublet on the Lange Broekweg in Naaldwijk will start in the first quarter of 2020. The construction of the heat network will start immediately.

New entrants
In 2017, 49 Westland greenhouse horticulture entrepreneurs joined forces and committed themselves to the development of Trias Westland, an innovative geothermal heat project to make greenhouse horticulture in Westland more sustainable. Now, more than two years later, with the commissioning of the first doublet in July 2019, 26 connected participants receive heat from a geothermal heat source in the Lower Cretaceous layer at a depth of 2.3 kilometers.

At the request of the greenhouse entrepreneurs, the initiators of Trias Westland - HVC, Capturam and Royal FloraHolland - investigated the possibilities for further utilization of heat by realizing a second doublet in Naaldwijk. The achieved financial close will also enable the other participating greenhouse growers, including various new entrants, to supply their businesses with sustainable heat.

Financial participation
After obtaining the SDE+ subsidy for a second doublet at the same location, efforts were made to secure financing. To further involve the participants in the Trias Westland project, a construction has been devised to offer participating companies the opportunity to participate in the risk-bearing part of the financing. A number of participants have decided to contribute to the financing.

Financial close
All parties have been contracted and Rabobank and BNG Bank jointly contribute the bank financing. Just like Trias Westland 1, the expansion will be financed on the basis of "non-recourse project financing". That is, a loan in which the bank is only entitled to repayment from the proceeds of the project, without liability of shareholders or third parties. That is why the banks thoroughly investigated the technology and financing of the integrated Trias Westland project in advance.

Expansion heat network
Part of the new development is also the expansion of the heat network of Trias Westland, whereby a large part of this network functions as the main line within the Westland Heat System (WSW), the regionally planned heat network in the Westland. Trias Westland has received a subsidy of 3.77 million euros for this from the Ministry of Agriculture, Nature and Food Quality. This support was already announced in the Climate Agreement.

The route studies of the heat network have largely been completed and worked out based on the signed agreements of the participants. The first works on the Kasteelweg in Naaldwijk will start at the beginning of September so that they can be combined with the planned refurbishment from the municipality of Westland. Over the next six months, two kilometers of heat lines will be installed in stages.

Trias Westland is an initiative of HVC, Capturam, Royal FloraHolland and a large group of greenhouse entrepreneurs. These partners attach great importance to sustainability and see geothermal energy as an important alternative to natural gas.

For more information: 
Trias Westland
www.triaswestland.nl

 


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