Austria: Schoenherr advises OMV on geothermal energy project “Tiefenkraft" with Energie Steiermark

The project is being implemented through a joint development company in which OMV holds a 75 % stake and Energie Steiermark 25 %. The collaboration follows a clear industrial setup with defined responsibilities along the entire value chain, from subsurface exploration to integration into the existing energy system. OMV is contributing its expertise in geology, drilling technology and subsurface project development, while Energie Steiermark is responsible for regional energy infrastructure and system integration, including the construction and operation of an approximately 20-kilometre district heating transport pipeline with an investment volume of around EUR 150 million.

"Tiefenkraft" has the potential to deliver up to 670 GWh of geothermal energy annually by 2037, equivalent to around 50 % of the district heating supply in the greater Graz area, making it the largest single investment in the history of Energie Steiermark. Following a successful seismic survey campaign, the project is now progressing to its next phase, with an exploration well planned for Q4 2026 and first heat delivery targeted as early as 2030.

Alfred Amann, lead partner on the transaction, commented: "We are proud to have supported OMV on yet another landmark geothermal project. 'Tiefenkraft' is a highly complex undertaking that spans joint venture structuring, regulatory approvals, mining law and energy infrastructure, and it underscores the critical role that deep geothermal energy will play in Austria's sustainable heat supply. Our collaboration with OMV in the geothermal space is a strong signal of the momentum behind Austria's heat transition."

Schoenherr provided comprehensive legal advice across multiple disciplines, covering the structuring and establishment of the joint venture, antitrust and competition law matters, as well as public procurement law and energy law aspects of this complex, multi-phase project.

The Schoenherr team was led by Alfred Amann (Partner) and further included Alexander Popp (Partner), Frederik Königstorfer (Associate), Nikolaus Stepan (Associate), Gabor Kulcsar (Associate) and Johannes Stalzer (Partner). Franz Urlesberger (Partner) and Hanno Wollmann (Partner) jointly advised the joint venture partners on the antitrust and competition law aspects of the project and were supported by Anna Sofia Reumann (Associate).

The OMV legal team was led by Johanna Freudensprung (Senior Expert Legal Business Partner Fuels, Chemicals & Projects) and further consisted of Stefan Schön (Senior Expert Legal Business Partner Energy) and Stefan Stockinger (Vice President Business Partner Energy). Yazid El-Shahed (Senior Expert Legal Business Partner Fuels, Chemicals & Projects) was responsible for the trademark aspects of the project.