Vulcan Energy (Karlsruhe, Germany) and BASF SE (Ludwigshafen, Germany) have signed a memorandum of understanding, in the presence of Daniela Schmitt, Minister of Economic Affairs, Transport, Agriculture, and Viniculture for Rhineland-Palatinate, to explore the use of geothermal energy at BASF’s Ludwigshafen site as part of a strategic partnership. The partners aim to jointly evaluate opportunities for harnessing natural heat from deep geothermal sources to supply BASF’s largest site with renewable energy capable of meeting base load power requirements in the future. Surrounding urban centers, including Frankenthal and Ludwigshafen, could also benefit from sustainable heat and are participating in the necessary seismic surveys as a first step. To optimise synergies from the project, Vulcan also plans to build a lithium extraction plant for the production of green lithium.
The geology of the Upper Rhine Graben gives the Rhine Valley region significant geothermal potential. If the exploratory work is successful, heat pumps could be used to harness geothermal energy to generate CO₂-free steam. With a potential output of 300 megawatts of thermal energy, around 4 million metric tons of steam could be produced annually at BASF’s Ludwigshafen site without fossil fuels. This would avoid approximately 800,000 metric tons of CO₂ emissions, significantly reducing greenhouse gas emissions at BASF’s main site.
In addition to renewable heat, Vulcan plans to produce sustainable lithium for the German and European battery and automotive industries. The geothermally heated water in the Upper Rhine Graben has a high lithium concentration, ideal for producing lithium-ion batteries used in applications such as smartphones, laptops, and electric cars. BASF would first use the hot thermal water to generate steam, after which Vulcan would extract lithium using an efficient adsorption-type direct lithium extraction (A-DLE) process. Both partners are examining the possibility of building a lithium extraction plant at BASF’s site.
Beyond industrial applications, deep geothermal energy offers the potential for district heating. This energy could play a key role in transitioning to sustainable municipal heating. Vulcan and BASF are collaborating with regional energy suppliers – Technische Werke Ludwigshafen and Stadtwerke Frankenthal – to evaluate whether the geothermal energy from the project can supply low-emission heating to households in these urban areas.
“We want to supply our Ludwigshafen site with CO₂-free steam in the future. In addition to harnessing waste heat from our production facilities, we aim to integrate renewable heat sources from geothermal structures,” said Uwe Liebelt, President of European Verbund Sites, BASF SE. “Vulcan brings the technological expertise to plan and implement such a complex project. Deep geothermal energy offers immense potential for our energy transformation and sets an example of how close collaboration between politicians, energy suppliers, and the industrial sector can drive the energy transition in the Rhine-Neckar Metropolitan Region for the benefit of all.”
“It’s encouraging to see the private sector develop innovative technologies to transform our economy and enhance international competitiveness. By leveraging domestic energy resources, we can reduce dependency on imports and stabilize energy prices,” said Daniela Schmitt, Rhineland-Palatinate Minister for Economic Affairs. “I strongly support the collaboration between BASF and Vulcan, as well as the involvement of local municipalities. Our goal is to position Germany and Rhineland-Palatinate as competitive industrial locations with sustainable energy solutions. I will continue advocating for an ‘Industrial Deal’ at the federal and EU levels.” She added that early 2025 will see further action in Brussels, informed by collaborative projects such as this one.
“This project represents a major contribution to reducing CO₂ emissions from the region’s industrial sector. Supplying renewable heat to Upper Rhine Valley companies is central to our development strategy. Models like this partnership with BASF enable us to harness geothermal energy while producing carbon-neutral lithium, benefiting regional populations with reliable heating and economic advantages,” said Thorsten Weimann, Chief Development Officer at Vulcan Energie Ressourcen GmbH.
“BASF’s role as a leading global chemical company is crucial for the region, and we’re excited to support its carbon-neutral energy goals for Ludwigshafen. This partnership demonstrates that combining geothermal energy with lithium production is both environmentally and economically beneficial, delivering value for businesses and the local community,” said Cris Moreno, Managing Director and CEO of Vulcan Energy Resources.
The next step involves conducting seismic surveys to explore geothermal conditions in the Upper Rhine Graben. Vulcan will lead the exploration and technical development. Initial exploratory work is expected to begin in early 2025.