Romania's Green Tech International debuted on the Bucharest Stock Exchange (BVB) in February 2025 with an impressive market capitalisation of €240mn (€220mn currently) — surpassing that of some companies already included in the BET blue-chip index. 

The company aims to triple its active geothermal capacity (its core expertise), double its installed capacity to 1 GWt by 2028, and expand into downstream business lines. For context, Europe's total geothermal capacity stood at 6 GWt in 2023. Green Tech also plans a dual listing on a foreign exchange in 2026.

Green Tech International group boasts 80+ geothermal wells, some of them admittedly idle and in need of restoration or retooling, with the active ones in Calimanesti-Caciulata where the group delivers hot water and heat. Last year, the group purchased Horti Green as a first step towards diversification into vegetable production, processing and storage and other synergetic sectors. Data centres will follow.

“Green Tech International is a European leader in geothermal energy, with over 12 years of experience in developing deep geothermal wells. Today, we own 42 wells and manage another 41 wells— the largest private portfolio in Europe, with a total installed thermal capacity of 300 MWt.,” the company’s COO Dragoș Gavriluță told bne IntelliNews in an interview. 

Green Tech International COO Dragoș Gavriluță. Source: Green Tech International. 

The IPO price — and even the current market capitalisation — serve more as a statement, given the tiny stake sold in the offering: just 0.64%, raising €1.4mn (€1mn net of IPO fees), primarily from individual investors. The low liquidity, modest profits expected in the first two years post-IPO, and high upfront financing needs are arguably offset by the prospect of substantial long-term returns. Transparent disclosure of progress on the investment plan — already evident in the company’s FY2024 report — and greater clarity on investment projects are key to stabilising the company’s shares ahead of capital gains.

Strong growth prospects 

However, the sector enjoys strong growth prospects as a major contributor to decarbonisation and energy efficiency, and despite being subject to multiple risks, the company’s business plan relies on sustainable fundamentals. 

With 300 MWt of installed heating and cooling capacity, Green Tech plans to capitalise on its vast resources with at least €500mn in investments — €220mn of which is planned within the next two years. Its three main projects focus on vegetable production, processing and storage (the largest in terms of investment and expected returns) as well as geothermal district heating in Bucharest. The company is also expanding into industries with strong synergies, including sustainable food production, district heating and data centre cooling solutions — a business line that was given more weight recently, compared to the IPO prospectus published in December.

“Historically, we are delivering heat to small towns and communities, but the current operation utilises only a small fraction of our potential. In addition to key operations related to district heating systems, the projects we are currently developing aim to increase the utilisation of the vast, readily available installed capacity,” Gavriluță commented during the first teleconference with investors.

Asked by bne IntelliNews about the purpose of the IPO, Gavriluță said “it was driven by the vision to become a leading provider of sustainable energy solutions, supporting the decarbonisation of critical EU sectors, including sustainable horticulture, data centres, and district heating … This step strengthens our position and financial capacity to implement our strategic growth plans.”

Green Tech International achieved several key goals, the company’s COO said, adding that all of them were accomplished. First, the company aimed to confirm to investors that it met all the stringent criteria required for public listing, which was achieved through its listing on the Bucharest Stock Exchange under the symbol GREEN. 

Second, the listing confirmed the company’s valuation. Lastly, by entering the capital market, the company gained access to capital from institutional and retail investors, providing the necessary resources to accelerate its strategic growth plans.

“In the coming three years, we plan to invest €500mn in innovative projects,” said Horia Pitulea, CEO Green Tech International, at the time of the group’s shares listing.

Targeting synergistic industries

Asked by bne IntelliNews what other investments the group envisages, Gavriluță said: “Green Tech International’s investment strategy targets majority stakes in synergistic industries where heat and cooling are critical cost factors. By leveraging its eco-friendly thermal energy production, the company enhances the efficiency and competitiveness of its invested businesses. 

“In addition to the €240mn investments mentioned in the IPO prospectus, Green Tech International plans to expand its portfolio across key growth sectors. These include sustainable agriculture and food production by developing eco-friendly greenhouses, enhancing district heating systems with geothermal solutions in Romanian cities to improve energy efficiency, and investing in geothermal-powered cooling systems for AI-ready data centres across multiple locations. These strategic investments aim to maximise the company’s geothermal resources while driving sustainable growth and contributing to the decarbonisation of critical sectors.” 

The big promises made by the company will require enhanced communication and an impeccable reputation. 

Green Tech promises substantial annual profits of around €55mn — or even more — but only from 2027 onwards and only after investing approximately €500mn from its own funds, borrowed capital and subsidies. This amount is double the market capitalisation claimed during the accelerated IPO conducted over Christmas (December 19-30). For 2025, virtually no profit (relative to its capitalisation) is expected, with the first notable results (€15mn) projected for 2026. Additionally, investors should consider the post-2027 profit outlook in the context of a capital increase, as the majority shareholder, Alpeurope Investments, is entitled to 29.9% of the current shares. These were transferred to an investment fund in exchange for equivalent-value shares to be issued at a later date.

The reputation of the group’s founders and management is crucial for such an investment-intensive plan to succeed. It is also the key to attracting more investors through the planned dual listing — one of the company’s stated objectives. 

“We are aware we are relatively unknown, both as a company and in the field of geothermal energy, which is also relatively unknown. Therefore, we need to engage more with our investors, explain what we do, increase transparency, and this is what we intend to do,” Gavriluță commented at the FY2024 press conference.

bne IntelliNews noted that most of the new shares were subscribed by individual investors (as opposed to institutional investors), asking Gavriluță if he sees any message in this. 

“Yes, we learned a lot from the initial results of our IPO. As a publicly listed company, we can — and will — communicate our plans more widely and invite individual and institutional investors to be part of our story,” Gavriluță said. “Additionally, geothermal energy is a relatively new sector that requires more time and effort to fully understand. We view this as an opportunity to strengthen investor relations, enhance transparency, and demonstrate consistent financial growth, thereby attracting a broader investor base in future rounds.” 

Shareholder profile 

In an attempt to strengthen its shareholder profile, Green Tech’s main shareholder reached an agreement with Bahamas-based private equity investment fund GEM GLOBAL YIELD (described as a “cornerstone investor”), who pledged to “make an investment” of up to €135mn in exchange for a stake of no more than 29.9% in GREEN, according to the IPO prospectus. The scheme is more complex, with GEM indeed paying for the 29.9% stake to Green Tech to receive the shares from Alpeurope Investments, while Alpeurope is entitled to Green Tech shares worth the money paid by GED, to be calculated at a later moment based on the current market price at that time.

The post-IPO shareholder structure confirms the deal has been initiated. Subsequent to the successful IPO, GEM paid an unspecified amount of money to Green Tech and received a 29.7% stake from Alpeurope Investments (51.2% before the IPO). One of the IPO’s goals was “to confirm the company’s valuation,” Gavriluță told bne IntelliNews. Based on the IPO implicit valuation, GEM must have paid some €72mn for the 23.7mn shares (29.7%).

The company’s main shareholder before the IPO was Alpeurope Investments, which currently holds a 21.1% stake, plus the right to get shares worth some €72mn — 29.9% or more if the market price falls below the IPO price. Alpeurope Investments is a Swiss-based company founded in 2018 by Raluca Simu, who currently owns the largest stake in Green Tech through Henri Maillardet (35.8%), a jewelry boutique also active in the real estate market. Maillardet and Alpeurope thus have a common founder, but since 2019 Alpeurope has been owned by Raluca Simu’s Swiss business partner, financial consultant Lars Alexander Haussmann, through E.M. Partners. 

bne IntelliNews asked Gavriluță about the entry of Henri Maillardet to the company’s shareholding, given it is not an investment fund (like the other two large shareholders) and the group had not been listed before 2025. 

“Henri Maillardet AG previously owned Horti Green Invest SA, a dormant entity with 16 geothermal wells and over 60 hectares of agricultural land. This holding was not synergistic with Henri Maillardet’s business, but it provided the best fit with Green Tech, which has expertise in managing geothermal wells,” Gavriluță explained.  “Consequently, Henri Maillardet became a shareholder of Green Tech International following the acquisition of Horti Green Invest SA by Green Tech International through a share swap in July 2024, thereby joining a group set to be publicly listed. Henri Maillardet is expected to remain a passive investor in Green Tech.” 

Sound production base

Green Tech claims it has “one of Europe's largest portfolios” of deep geothermal wells encompassing 300 MWt of actual geothermal capacity in more than 80 wells, 500 MWt installed capacity and a 12-year experience in the field. The capacity is planned to reach 1 GWt in over 100 wells by 2028. With this view, the company says it already controls (“majority lock-up”) three of Romania’s four major regions with geothermal potential and has “exclusive control” over two areas: Bucharest-Otopeni and Cozia-Caciulata.

The most advanced projects and those included for financing in 2025-2026 are those in Bucharest.

The Bucharest district heating production and distribution system is well known to be burdened by frequent financial blockages and malfunctions. On the other hand, there are converging efforts to exploit the geothermal resources in the north of the city. 

“Green Tech International recognises the challenges and opportunities that Bucharest’s district heating system presents. The aging infrastructure, frequent financial constraints, and operational malfunctions highlight the urgent need for sustainable and efficient heating solutions. At the same time, the geothermal potential in the northern part of the city represents a significant opportunity for transformation,” said Gavriluță. 

“Romania is among the top five European countries with geothermal energy potential. The primary geothermal deposits are in and near Bucharest, Oltului Valley and West Romania,” he also highlighted. 

“While EU legislation recognises geothermal energy as eligible for public funding, the concrete implementation of these decisions has been delayed, despite the growing number of geothermal projects across Europe. According to the European Geothermal Market Report, by the end of 2023, 11mn consumers had benefited from geothermal electricity, and 20mn from heating and cooling, in 400 cities and factories,” Green Tech’s COO said. 

"Geothermal energy can be a cost-effective, reliable, sustainable, and environmentally friendly local solution for district heating, which has already been successfully used in western Romania for this purpose. It is the best solution for decarbonisation and district heating in the context of EU requirements and the timeline for municipal decarbonisation. We have a solid footprint in the market, we can handle large-scale projects and help with the most suitable energy solution.” 

Geothermal in district heating 

The EGEC Geothermal Market Report 2023 confirms 131 MWt active geothermal capacity used for District Heating and Cooling (DHC) in Romania. 

By the end of 2023, there were 401 geothermal DHC systems in Europe, with 298 in EU member states. Europe’s total installed geothermal heating and cooling capacity reached 6 GWth across 29 countries, with more capacity expected as projects in Bosnia & Herzegovina, Ireland, Latvia, Luxembourg and Malta come online. Eight new systems were commissioned in the EU, adding 33.9 MWth to European geothermal heating and cooling capacity. Around 64 new projects were announced, with significant developments in Germany, the Netherlands, and Croatia. France remains the leader in geothermal district heating capacity in the EU, second only to Iceland in Europe. In 2023, new geothermal systems were installed in Finland, Germany, the Netherlands, Romania and Slovakia.

Competitive projects are already envisaged to heat Bucharest with geothermal energy. The Romanian capital will be heated with thermal water, according to a memorandum signed in July 2024 by Electrocentrale București (ELCEN), a company owned by the Ministry of Energy, with the American company SAGE Geosystems. Through this document, ELCEN and SAGE intend to carry out a feasibility study on the implementation of technologies for the use of geothermal resources within the Bucharest district heating system.

"We are starting another revolutionary project together, in geothermal energy. A memorandum is being signed today between ELCEN and the American company SAGE Geosystems. Bucharest has this resource in the north of the city. With US support, we will be able to integrate geothermal energy into the capital's district heating system, reducing residents' bills and using clean energy," said Prime Minister Marcel Ciolacu at a joint Romania-US event.

Asked which other cities are of interest for investments in district heating, besides Bucharest, Călimănești and Nădlac, Gavriluță said:  “Romania is among the top five European countries with potential geothermal energy, with exploration currently conducted at 24 sites. At the beginning of 2024, the European Parliament voted in favour of the Resolution to establish a European strategy for geothermal energy.

“However, the country has a significantly larger number of underground geothermal water sources. Several cities in Romania, such as Timișoara and Oradea, are already interested in exploring and utilizing geothermal energy for heating residential areas. We hope the use of geothermal energy will become a regular solution.” 

A new challenge 

The largest part of the investments Green Tech envisages for 2025-2026, amounting to approximately RON2.1bn (€240mn) — just over the group’s market capitalisation — focuses on vegetable production and processing. This includes Parc Agroindustrial with a RON389mn investment and Sere hidroponice with RON556mn; in total about RON940mn. These sectors will generate the largest part of the group’s revenues and profits at least until 2033, according to the IPO prospectus. However, Gavriluță says this will not change the strategic orientation of the group. 

"Green Tech International’s strategy is centred on leveraging its geothermal energy resources and expanding into synergistic industries that benefit most from a stable and sustainable heat or cooling supply. Investing in greenhouse vegetable production and agro-industrial processing aligns with this core strength, as these industries are intensive energy consumers, a resource the company has at an effective cost and with immediate availability,” the company’s COO told bne IntelliNews. 

“Rather than signalling a shift away from geothermal resource exploitation, these investments expand the company’s business model, ensuring higher-value applications for its energy assets. By integrating geothermal energy into large-scale food production, the company enhances sustainability and profitability, reducing dependency on traditional energy supply while securing long-term revenue streams.” 

Gavriluță also pointed to the company’s 300 MWth of available installed geothermal capacity, with key activities concentrated in the Călimănești-Căciulata area, where geothermal water is used for urban heating systems, and leisure facilities. “The planned investments in agriculture would maximise the economic potential of geothermal resources while reinforcing Green Tech International’s leadership in sustainable energy applications,” he said. 

Asked whether the firm has expertise in agriculture, Gavriluță said Green Tech plans to form partnerships with specialised companies and is currently in discussions with such companies. “I can also mention that I have spent the last six years in the renewable energy sector and am familiar with this field, including the regulations and everything involved, so I can contribute and help the team as well.” 

Green Tech plans projects including hydroponic greenhouses (20ha and 30ha in size) and processing capacities for dried fruits and vegetables.

“Considering the hydroponic greenhouses project to be developed in the proximity of Tomnatic and Lovrin, we envisage both the domestic and export markets for fresh and processed products, and one of the first targets is the sale of tomatoes and other vegetables,” Gavriluță said. “The plan is to start with 20 ha being functional in the first stage of operation.”