Geothermal energy is rapidly gaining recognition as a sustainable solution for both industrial and residential energy needs, offering significant environmental and economic benefits.
Reflecting this potential, Vulcan and BASF have signed a memorandum of understanding to explore the use of geothermal energy at BASF’s Ludwigshafen site, with a strategic partnership that could bring significant environmental benefits.
The partnership aims to evaluate the opportunities for harnessing natural heat from deep geothermal sources to supply BASF’s largest site with renewable energy. This could potentially meet the site's base load power requirements. Surrounding urban centers, including Frankenthal and Ludwigshafen, could also benefit from sustainable heat and are participating in necessary seismic surveys as a first step.
Could this project reduce carbon emissions significantly?
The geology of the Upper Rhine Graben region presents significant geothermal potential. If successful, the exploratory work will lead to the use of heat pumps to harness geothermal energy and generate CO₂-free steam. This project has the potential to produce around 4 million metric tons of steam annually at BASF’s Ludwigshafen site, avoiding approximately 800,000 metric tons of CO₂ emissions.
Geothermal energy fuels lithium
Vulcan plans to develop a lithium extraction plant alongside providing renewable heat, aiming to produce green lithium for Germany and Europe’s battery and automotive industries. The geothermal water in the Upper Rhine Graben, rich in lithium, is ideal for creating lithium-ion batteries used in smartphones, laptops, and electric vehicles.
The project also holds promise for district heating, playing a crucial role in the shift towards sustainable municipal heating. Vulcan and BASF are collaborating with regional energy providers to assess whether geothermal energy can supply low-emission heating to urban households.
“We want to supply our Ludwigshafen site with CO₂-free steam in the future,” said Uwe Liebelt, President of European Verbund Sites, BASF SE. “In addition to harnessing waste heat from our production facilities, we aim to integrate renewable heat sources from geothermal structures.”
Thorsten Weimann, Chief Development Officer at Vulcan Energie Ressourcen GmbH, emphasized the project's role in reducing CO₂ emissions in the region’s industrial sector. Cris Moreno, Managing Director and CEO of Vulcan Energy Resources, highlighted the environmental and economic advantages of combining geothermal energy with lithium production.
The next phase involves conducting seismic surveys to assess geothermal conditions in the Upper Rhine Graben, with Vulcan spearheading the exploration and technical development. Initial exploratory activities are set to begin in early 2025.
This collaboration showcases the potential for sustainable energy solutions through strong partnerships between industry leaders, politicians, and local communities.