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NL: Cost of failed geothermal drilling only partially covered

The decision to continue working at the old location despite drilling problems has incurred costs in the development of geothermal heat at Agriport A7 in Middenmeer. (the Netherlands). The damage was only partially covered, leading to a lawsuit against the insurer. Last month, the court ruled that the insurer must pay 3.8 million euros to the energy company. However, this amount is significantly lower than the total claimed amount of 26 million euros. The costs of repairing the problematic well are to be borne by the energy company, due to the decisions made during the process.

According to the Rotterdam District Court ruling on July 18, 2024, issues arose during the development of geothermal heat in the summer of 2017. During the initial attempt, the liner became stuck in the drilling corridor. The tube could only be partially withdrawn, and the tools used were damaged and partially left in the borehole.

In search of a solution, a sidetrack was attempted, slightly closer to the injection well. However, even with this attempt, the liner jammed again. Consequently, an alternative drilling route was chosen, using a different drilling shape—an S-shape instead of a J-shape. This drilling attempt was successful, but it resulted in the pump well and the injection well being closer together than planned. This proximity reduced efficiency due to the faster mixing of the warm water being pumped up with the cooled water being pumped back.