Vulcan and BASF Partner for Geothermal Energy Exploration in Germany
Vulcan Energy and BASF have signed a memorandum of understanding to explore geothermal energy usage at BASF's Ludwigshafen facility in Germany. The partnership aims to leverage natural geothermal heat to provide a renewable energy source for BASF's largest production site, and could also benefit surrounding urban areas like Frankenthal and Ludwigshafen. The project is intended to help meet future base load power needs sustainably.
The companies plan to assess the potential for utilizing deep geothermal sources to generate CO₂-free steam through heat pumps, which could produce approximately 4 million metric tons of steam annually—equivalent to an output of 300 megawatts of thermal energy. This could help BASF avoid around 800,000 metric tons of CO₂ emissions each year, significantly lowering its greenhouse gas emissions.
The Upper Rhine Graben’s geology offers significant geothermal potential, which BASF hopes to tap into for both industrial and municipal heating purposes. To optimize the benefits, Vulcan Energy is also planning to establish a lithium extraction plant on-site. The geothermally heated water is rich in lithium, and the project aims to produce lithium-ion batteries for use in electric vehicles and consumer electronics. BASF would use the thermal water to generate steam first, and then Vulcan would extract lithium through an adsorption-based direct extraction process. The partners are also considering the possibility of establishing the lithium extraction plant at BASF's Ludwigshafen facility.
Vulcan and BASF are also collaborating with local energy suppliers to determine if geothermal energy from the project could be used for district heating in the nearby communities. Technische Werke Ludwigshafen and Stadtwerke Frankenthal are participating in the seismic surveys needed for initial exploration.
“We are focused on ensuring that our Ludwigshafen site will be supplied with CO₂-free steam in the future. Alongside integrating waste heat, renewable heat sources from geothermal structures are also part of our strategy,” said Uwe Liebelt, President of European Verbund Sites at BASF. “Deep geothermal energy has great potential to help transition our energy systems, and partnerships like this one demonstrate the value of collaboration between industry, policymakers, and energy providers.”
Daniela Schmitt, Rhineland-Palatinate’s Minister of Economic Affairs, highlighted the importance of such projects in reducing reliance on energy imports. “This partnership between BASF and Vulcan sets a strong example of using local resources to stabilize energy prices and strengthen regional energy autonomy,” she said.
Exploration efforts will begin with seismic surveys in early 2025, led by Vulcan Energy, to assess the feasibility of geothermal development. Vulcan is also spearheading technical developments related to the project.
