A production licence is required to be allowed to produce geothermal energy from the subsurface. Within the Mining Act production is seen as the extraction of geothermal energy from the subsurface deeper than 500 m. The production licence gives the licence holder the exclusive right to extract geothermal energy within the area and duration of the licence. Like the exploration licence, the production licence is a market organization licence. The production licence is applied for by the holder of the exploration licence.
Sections 6, 8, 9, 10 and 15 of the Mining Act refer to the production licence.
Temporary policy framework
A temporary policy framework was introduced on 14 November 2019, which has consequences for the processing of an application for a production licence. The temporary policy framework anticipates the planned amendment to the Mining Act, in which the licence system for geothermal energy will be adjusted so that it is more in line with practice.
With the introduction of the temporary policy framework, it is possible to apply for a production licence before the first well is drilled. The production licence is not a prerequisite for drilling, but it is required for the production of geothermal energy. To be able to complete the procedure in time, it is requested to submit the request for a production licence at least 30 weeks before the start of drilling. More information can be found in the letter on the temporary policy framework.
The production licence differs from the production plan, although both are required for starting the production of geothermal energy. The production licence is a market organization licence, while the production plan describes the method of production. The production licence and plan are processed in a separate procedure. The Ministry of Economic Affairs and Climate Policy is the competent authority for both procedures.
TNO-AGE evaluates the geotechnical part and the size of the licence area on behalf of the Ministry of Economic Affairs and Climate Policy.