E.on SE (ETR:EOAN) plans to add a modular power plant to the geothermal facility in Kirchweidach, Bavaria, so that it can generate green electricity in addition to producing heat.

The German electric utility said in a statement last week that it intends to build a plant of 6 MW, starting with a 1-MW portion. For this purpose, E.on will use ORC modules supplied by partner Orcan Energy AG.

The project represents Orcan Energy's entry into the geothermal market, the firm said separately.

E.on estimates it will need to invest EUR 7.5 million (USD 8.9m) in the first phase of the project. Once it adds 1 MW of power generating capacity by end-2021, it will proceed with the construction of a large-scale ORC plant and a combined heat and power facility.

“The Kirchweidach geothermal energy project proves how efficiently we can use heat for electricity supply today. There is also still great waste heat potential in industry. We can tap this potential for a CO2-free power supply for industry,” said Alexander Fenzl, Country Head B2B Solutions Germany at E.ON Business Solutions.