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A sustainable heat transition

A warm home, comfortable offices, productive plants and commercial greenhouses: approximately 40% of all the energy we use in the Netherlands is dedicated to heating and industrial processes. That’s a significant proportion, presenting a substantial opportunity to accelerate the energy transition. By making our heat more sustainable through the use of local heat sources and heat networks, we can take a major step towards energy independence and a reliable heat supply.

However, this is not a simple step to take. Unlike the current natural-gas-based heating system, a sustainable heating system requires precise coordination between the demand for heat and its supply from green and local sources. In our view, sustainable collective heat networks are an essential building block for a well-functioning energy system, which can also help alleviate grid congestion. EBN, as the Dutch state energy company, is committed to making a difference in the development of a sustainable heating system, in collaboration with public partners such as municipalities, provinces, and publicly owned grid operators.

Over the past 50 years, we have acquired extensive knowledge in the Dutch extractive industries, particularly in the ‘subsurface business’ domain. We are now sharing that knowledge to strengthen the Dutch heat sector and accelerate the transition to a sustainable heat value and supply chain. Publicly owned heat networks have the potential to restore confidence in heat companies and enable a sustainable and reliable heat supply at reasonable rates. To strengthen public ownership of heat companies, EBN is expected to take on the role of National Heat Investor under the Collective Heat Act from 2026 onwards—a role for which we have been preparing since 2024 at the request of the Minister of Climate Policy and Green Growth.

Geothermal energy is an indispensable link in the sustainable heat transition. This local heat source has already been used for some time in the commercial greenhouse sector but is also suitable for heating homes and buildings. That is why we are pursuing the development of geothermal heat connected to heat networks.

Our role is not just about sharing knowledge; we are also taking on a risk-bearing stake in a growing number of geothermal energy projects—and starting in 2026, in heat networks—in the Netherlands, on behalf of the Ministry of Climate Policy and Green Growth. Since the second half of 2023, we have been required by law to be involved in all Dutch geothermal projects. At least 50 of these geothermal projects will be underway by 2030, supplying sustainable geothermal heat to the equivalent of at least 500,000 homes per year.

We are also conducting research with partners in areas where there is a great need for heat but little knowledge of the subsurface, to better visualise the potential of geothermal energy for the heat sector and increase the chances of success for geothermal projects. An excellent example of this is the SCAN research programme. We are further investigating, together with a growing number of public partners such as municipalities, provinces, and grid operators, the possibility of establishing publicly owned local and regional heat companies.

Lastly, we are exploring the possibility of temporarily storing high-temperature heat underground (HT-ATES). The thermal energy stored in this way can be used later, during cold snaps and other times when extra heat is required, thereby increasing the security of supply.

These functions suit EBN well because we have the financial strength to invest in geothermal energy projects and heat networks, and because of the role we can play in the heat value and supply chain. Tens of billions of euros are needed for the construction of heat networks and geothermal wells until 2050, and capital-rich publicly owned companies like EBN are essential to finance this.

Thanks to our portfolio approach in the field of both geothermal projects and publicly owned heat networks, we have a comprehensive overview of projects across the Netherlands. This way, new insights can be created in the fields of technology, financing, planning, and standardisation. EBN can then share these successful examples and valuable lessons with the (geothermal) heat sector. This approach improves the quality of projects and reduces the costs for local heat networks, ultimately benefiting the end user connected to a local heat network. This important as affordability of the energy bill for Dutch households is essential.

EBN has also extensive experience in public-private partnerships. Whether we take a leading role or play our part in the background, we always act as a connecting agent and accelerator, and when needed, as a coordinator. In the heat sector, too, we can bring the right public and private players together and ensure that the pace of the transition continues to increase.

As the Dutch state energy company, we are truly motivated to apply our knowledge and resources to secure a sustainable heat transition. Together with all parties involved, we want to ensure that the heat supply is available, safe and affordable – now and in the future.