MADRID – October 29, 2026 -- Thirty industrial clusters across 11 European countries could displace more than €850 million per year in fuel spending by switching to geothermal heat, according to a new analysis from Project InnerSpace and Future Cleantech Architects (FCA). The conversion would also avoid 4.3 million tonnes of CO2 emissions annually, equivalent to the emissions from more than nine million barrels of oil consumed.

Clusters span 11 EU Member States, with 152 more candidates identified

The report, Unlocking Europe's Geothermal Industrial Heat Potential, covers geothermal potential in every EU country. The 30 priority clusters are located in Austria, Belgium, Bulgaria, France, Germany, Hungary, Italy, the Netherlands, Poland, Slovakia and Spain.

The authors describe the 30 as a starting point. A wider pool of 152 candidate clusters could follow.

Gas supplies about half of EU industrial heat, and 90% of that gas is imported

Natural gas supplies roughly half of EU industrial heat, and the bloc imports about 90% of the gas it consumes. The subsurface beneath the EU 27 holds an estimated 18,000 gigawatts-thermal of heat at 100°C or above. That temperature is sufficient for industrial processes including cooking, dehydration, distillation and sterilization.

The 2022 gas price spike showed the exposure. Output in Germany's energy-intensive industries fell by about 20%. The authors argue that domestic geothermal wells would reduce exposure to price swings and supply disruptions and help manufacturers stay competitive.

Drew Nelson, VP of Strategy at Project InnerSpace, called industrial heat applications "a major opportunity hiding in plain sight."

Report proposes eight policy measures in three groups

The analysis groups its recommendations into three areas:

• Organise first projects: make industrial geothermal a priority, turn heat demand into clusters, and designate a credible operator for each cluster.
• Reduce early-stage risk and unlock investment: take the risk out of first wells, make Innovation Fund pathways work for first-of-a-kind next-generation geothermal, and make clusters financeable.
• Create conditions to scale: accelerate permitting, secure geothermal rights, improve subsurface data and reduce seismicity risk.

Dr Marlène Siméon, Director of Policy at FCA, said next-generation geothermal is still in the early phases of commercialization in Europe. She said public policy can bridge the gap between lab and market, as it did for solar and wind decades ago.

EU Geothermal Strategy and national energy plans targeted as delivery vehicles

The authors name the EU's forthcoming Geothermal Strategy and Action Plan, together with the Geothermal Stakeholder Partnership, as the place to bring these measures together by naming priority clusters. Member States can set out geothermal's role in meeting renewable energy targets in their national energy and climate plans.

Project InnerSpace and FCA will present the findings in a webinar on October 28. Opening remarks will come from Andris Piebalgs, former EU Commissioner for Energy, and Martin Hojsík, European Parliament Vice-President.