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OMV and Energie Steiermark Partner for Deep Geothermal Energy
The partners are assessing deep geothermal potential in Styria through the Tiefenkraft project, with the goal of supplying up to 50% of district heating demand in the greater Graz area by 2037.
www.omv.com
OMV and Energie Steiermark have formed a joint venture to develop deep geothermal energy solutions under the "Tiefenkraft" project in Styria. The initiative implements specialized geological modeling, drilling technology, and regional pipeline infrastructure to modernize the district heating supply in the greater Graz area.
Context of the Cooperation
The partnership addresses the technical and regional operational challenges of transitioning to a sustainable and independent regional heat supply. Evaluating and developing deep geothermal resources requires substantial scale, geological mapping, specialized drilling infrastructure, and large-scale utility integration. To manage this technical complexity, cooperation was established between OMV and Energie Steiermark to leverage their complementary capabilities across the full value chain.
OMV provides expertise in geology, drilling technology, and subsurface and surface project development, while Energie Steiermark contributes capabilities in regional energy infrastructure, system integration, and heat distribution. According to Martin Graf and Werner Ressi, members of the Management Board of Energie Steiermark, the initiative represents the largest single investment in the company's history.
Technical Solution and Responsibilities
The industrial implementation is managed via a joint development company in which OMV holds a 75 percent stake and Energie Steiermark holds a 25 percent stake. The responsibilities are distributed according to each partner's technical domain:
- OMV is responsible for geology, exploratory and production drilling, and overall subsurface project execution.
- Energie Steiermark is responsible for infrastructure, system integration, heat distribution, and fully managing the construction and operation of a transmission pipeline, which requires an investment volume of approximately EUR 150 million.
At a system level, the "Tiefenkraft" project aims to extract deep geothermal energy and integrate it into the regional grid, targeting a long-term output of up to 670 GWh of geothermal energy annually by 2037 to cover approximately 50 percent of the greater Graz district heating network. The technical architecture involves developing a geothermal doublet system consisting of one production well and one injection well. Furthermore, the architecture includes plans for two additional wells to evaluate the technical feasibility of an Aquifer Thermal Energy Storage (ATES) system, which functions by storing surplus heat underground for seasonal deployment. Berislav Gašo, OMV Executive Vice President Energy, stated that the integration of geology and drilling technology serves to lay the foundation for a sustainable heat supply.
Deployment or Implementation
The development program spans multiple sequential phases from initial geophysical exploration to full commercial commissioning. Between February and April 2026, the companies executed a comprehensive seismic survey covering approximately 900 kilometers of roads as measurement lines, providing data that is currently being evaluated to construct a detailed subsurface model.
The next project phase will involve drilling a planned exploration well named "Petersdorf 2" in St. Marein near Graz. Preparatory construction work is scheduled to begin in September 2026, with drilling operations expected to commence in the fourth quarter of 2026, subject to permitting and site construction completion. The drilling and initial verification phase will take approximately three to four months. Following successful verification testing, a final investment decision will dictate full implementation, including all production and injection wells, surface pump stations, and the installation of an approximately 20-kilometer water transmission pipeline connection to Graz, with initial heat delivery scheduled to begin as early as 2030.
Edited by Romila DSilva, Induportals Editor, with AI assistance.
Deployment or Implementation
The development program spans multiple sequential phases from initial geophysical exploration to full commercial commissioning. Between February and April 2026, the companies executed a comprehensive seismic survey covering approximately 900 kilometers of roads as measurement lines, providing data that is currently being evaluated to construct a detailed subsurface model.
The next project phase will involve drilling a planned exploration well named "Petersdorf 2" in St. Marein near Graz. Preparatory construction work is scheduled to begin in September 2026, with drilling operations expected to commence in the fourth quarter of 2026, subject to permitting and site construction completion. The drilling and initial verification phase will take approximately three to four months. Following successful verification testing, a final investment decision will dictate full implementation, including all production and injection wells, surface pump stations, and the installation of an approximately 20-kilometer water transmission pipeline connection to Graz, with initial heat delivery scheduled to begin as early as 2030.
Edited by Romila DSilva, Induportals Editor, with AI assistance.
