Vulcan Energy has received authorisation to begin seismic surveys for its geothermal energy and lithium extraction project in the Ludwigshafen region, a collaboration with chemical giant BASF. The approval marks the first phase of development as the two companies explore the potential for renewable heat and lithium production from deep geothermal resources.
The German-Australian lithium specialist and BASF signed a letter of intent three months ago to assess the feasibility of using geothermal energy at BASF’s Ludwigshafen site. Vulcan will lead the exploration phase, conducting two-dimensional seismic measurements over approximately 75 square kilometres in the Vorderpfalz region, which includes the towns of Bad Dürkheim, Deidesheim, Mutterstadt, Frankenthal, and Ludwigshafen. The findings will inform subsequent 3D surveys and site selection for further development.
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“This development reflects our broader integrated business approach, whereby we will seek to replicate this model across the Upper Rhine Valley through strategic partnerships with large industrial companies like BASF,” said Vulcan CEO Cris Moreno. “This approach not only drives sustainable energy supply in the regions but heavily contributes to Europe’s transition to green electromobility.”
BASF sees the project as a crucial part of its transformation efforts. “This project represents one of the most important transformation projects on our site, which will potentially cover a significant proportion of our future energy requirements without the use of fossil fuels,” said Tilmann Hezel, Senior Vice President Infrastructure at BASF Ludwigshafen.
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Vulcan aims to establish a local supply of lithium for European battery and automotive industries. The company has developed a process to extract lithium hydroxide from geothermal brine, and in 2024, it produced its first battery-grade lithium hydroxide at its Central Lithium Electrolysis Optimisation Plant (CLEOP) in Germany. A potential lithium extraction facility at BASF’s site would align with this strategy, leveraging synergies from the geothermal project.
BASF has previously indicated that, if exploration is successful, geothermal heat could be used to generate CO₂-free steam with a potential output of 300 megawatts of thermal energy. This could replace approximately four million tonnes of fossil-fuel-derived steam annually, preventing around 800,000 metric tons of CO₂ emissions.
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Vulcan’s combined geothermal and lithium resource is the largest in Europe, with its licence areas concentrated in the Upper Rhine Valley. The company’s definitive feasibility study, published in February 2023, outlines plans to produce 24,000 tonnes of lithium hydroxide monohydrate per year from its first phase of development.
Source: investi.com.au