Energy

Geothermal boreholes in Melilla: favorable environmental report and next steps

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Equipo Editorial CambiosLegales
Oct 10, 2026 6 min 7 views

Key data

RegulationResolution of September 22, 2026, from the General Directorate of Quality and Environmental Assessment — environmental impact report of the project "Execution of a battery of research boreholes derived from the extension request of the mining research permit 'Melilla Geothermal Energy' no. 001"
PublicationOctober 10, 2026
Entry into forceOctober 10, 2026
PromoterMelilla Geothermal Energy
Research permitno. 001 — Autonomous City of Melilla
Number of approved boreholes6 (reduced from 9 after project modifications)
Maximum borehole depth3,500 m
Drilling mudBentonite
Water systemClosed-loop water circuit
Report typeFavorable simplified environmental impact
Ordinary assessmentNot required for the research phase
CategoryEnergy / Mining research
Direct stakeholdersMelilla Geothermal Energy and administrations of the Autonomous City of Melilla
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Melilla Geothermal Energy obtains environmental approval to advance in the characterization of the hydrothermal deposit in the Autonomous City of Melilla. The Resolution of September 22, 2026 from the General Directorate of Quality and Environmental Assessment concludes that the research boreholes do not require ordinary environmental impact assessment, clearing the path for the subsurface exploration phase.

The project, linked to the extension of mining research permit no. 001, has gone through a consultation process with multiple agencies and required additional information from the promoter before reaching this favorable resolution. The reduction from 9 to 6 boreholes was one of the key modifications that facilitated the positive conclusion.

6
Approved boreholes (reduced from 9)
3,500 m
Maximum drilling depth
Favorable
Result of simplified environmental report

What does this regulation establish?

The resolution formulates the simplified environmental impact report for the project of executing a battery of geothermal research boreholes in Melilla. The most relevant technical and procedural points are:

Project elementDetail
ObjectiveCharacterize the hydrothermal deposit of the Autonomous City of Melilla
Number of boreholes6 (modified project; the original contemplated 9)
Maximum depth3,500 m
Drilling mudBentonite
Water systemClosed-loop water circuit
Procedure resultOrdinary environmental impact assessment is not necessary
Expressly excluded phaseExploitation and plant construction (requires separate processing)

The procedure included consultations with multiple agencies and requests for additional information from the promoter. After that process, the General Directorate concluded that the research project, in its version reduced to 6 boreholes, does not generate impacts that justify an ordinary assessment.

It is essential to understand the exact scope of this report: it only covers the research phase. Any move toward commercial exploitation of the geothermal resource or construction of an energy utilization plant must initiate an independent environmental procedure.

Economic and operational impact

For Melilla Geothermal Energy, this favorable report has direct operational value: it allows advancement in drilling the 6 research boreholes without needing to undergo the longer and more costly process of an ordinary environmental impact assessment.

From an operational perspective, the aspects that condition project execution are:

  • Reduction of boreholes: moving from 9 to 6 boreholes implies a reduction in the initial scope of the research project, with corresponding adjustments in drilling and logistics costs.
  • Use of bentonite: the chosen drilling mud is bentonite, a common material in this type of drilling, with implications for waste management and environmental work protocols.
  • Closed-loop water circuit: the closed-loop water system minimizes water consumption and discharges, reducing environmental risk and facilitating compliance with report conditions.
  • Mandatory future processing: the exploitation phase and plant construction are expressly excluded from this procedure. This means that if the deposit proves viable, a new environmental assessment process must be initiated before any commercial activity.

The impact on third parties (other companies, suppliers, regional energy sector) is limited in this phase: it is a research project confined to the Autonomous City of Melilla.

Who does it affect?

  • Melilla Geothermal Energy: direct promoter of the project, holder of mining research permit no. 001. It is the only agent with operational obligations derived from this resolution.
  • Administrations of the Autonomous City of Melilla: must coordinate and supervise project execution in their territory, as well as participate in processing future phases.
  • Agencies consulted during the procedure: participated in the assessment process, although the resolution does not generate new obligations for them.
  • Energy sector and geothermal companies: this project can serve as a reference for future geothermal research promoters in Spain, especially in territories with similar hydrothermal characteristics.

Practical example

Melilla Geothermal Energy initially presented a project with 9 research boreholes. After the consultation process with agencies and requests for additional information from the General Directorate of Quality and Environmental Assessment, the company modified the project reducing it to 6 boreholes.

Thanks to this adaptation, the resolution concludes that ordinary environmental impact assessment is not necessary — a significantly longer and more complex process. The company can now execute the 6 boreholes at depths of up to 3,500 m, using bentonite as drilling mud and a closed-loop water system, with the environmental backing of the favorable simplified report.

If the boreholes confirm the viability of the hydrothermal deposit, the next mandatory step will be to initiate a new environmental assessment procedure specific to the exploitation phase and plant construction, which is expressly excluded from the current resolution.

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What should companies do now?

  1. Melilla Geothermal Energy: verify the conditions of the favorable report before starting drilling. The simplified report may include specific conditions that must be met during the execution of the 6 boreholes.
  2. Adjust the work plan to the modified project: the approved project contemplates 6 boreholes (not 9). Any later expansion would require new environmental processing.
  3. Ensure the use of bentonite and closed-loop water circuit as recorded in the evaluated project. Changing these technical elements could invalidate the favorable report.
  4. Plan in advance the processing of the exploitation phase: the resolution expressly excludes exploitation and plant construction. If the boreholes are positive, starting the environmental assessment process for that phase as soon as possible will avoid delays in project development.
  5. Coordinate with the administrations of the Autonomous City of Melilla all necessary sectoral permits and authorizations for the execution of drilling work.

Frequently asked questions

How many boreholes does the favorable environmental report authorize for Melilla Geothermal Energy?

The favorable report covers the execution of 6 research boreholes. The original project contemplated 9, but was reduced to 6 after modifications made during the simplified environmental assessment process.

Does Melilla Geothermal Energy need an ordinary environmental impact assessment for the boreholes?

No. The General Directorate of Quality and Environmental Assessment expressly concludes that it is not necessary to submit the research borehole project to ordinary environmental impact assessment. The favorable simplified report is sufficient for the research phase.

Is the geothermal exploitation phase in Melilla also covered by this report?

No. The resolution expressly excludes the exploitation phase and plant construction. Both activities will require separate and independent environmental processing before they can begin.

To what depth will the geothermal research boreholes in Melilla reach?

The research boreholes will reach depths of up to 3,500 meters. The objective is to characterize the hydrothermal deposit of the Autonomous City of Melilla using bentonite as drilling mud and a closed-loop water system.

When does the favorable environmental report for Melilla's geothermal boreholes come into force?

The resolution was published and came into force on October 10, 2026, the date of its publication in the Official State Gazette (BOE-A-2026-21155).

Official source

Consult complete regulation in official source

Notice: This article is purely informative in nature and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-21155



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