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Vulcan Energy signs German offtake agreement for geothermal heat from Lionheart Phase One project

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By Imelda Cotton - 
Vulcan Energy Resources ASX VUL Vulcan renewable heat offtake agreement EnergieSüdwest AG
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Vulcan Energy Resources (ASX: VUL) has signed an offtake agreement with German municipal energy supplier EnergieSüdwest AG for the supply of geothermal renewable heat from Vulcan’s Lionheart Phase One project in the Upper Rhine Valley Brine Field.

Under the terms of the 35-year agreement, Vulcan will supply various districts in the Landau area with geothermally generated heat produced from several production sites at Lionheart Phase One.

The heat will come from Vulcan’s owner-operated Landau Süd production centre, along with a geothermal and lithium extraction plant the company plans to build at the D12 industrial site as part of the Phase One project.

Long-term heating

Vulcan managing director Cris Moreno said the agreement marked an important step toward sustainable, long-term district heating.

“This initiative signals the beginning of a broader transition to renewable geothermal energy in Landau, with the potential to significantly cut carbon dioxide emissions and set a precedent for other communities,” he said.

The agreement will commence at 25 gigawatt-hours and gradually increase to a maximum of 595GWh by 2042 and follows Vulcan starting to supply renewable heat from its existing geothermal wells in Landau directly into the neighbouring EnergieSüdwest heating system.

Heat4Landau project

Vulcan is already commercially producing geothermal baseload power in Germany for 6,500 homes and aims to expand its reach to more households and businesses in the area.

As part of this goal, the company will complete five additional production well sites at Lionheart Phase One as part of the Heat4Landau project, for which it received a $179 million grant in November under the German Recovery and Resilience Plan.

The project comprises infrastructure necessary for 255 megawatts of renewable geothermal heat generation, as well as transport and delivery to support Landau’s transition to sustainable and renewable district heating starting in 2026.

Landau, the location of Vulcan’s existing upstream optimisation plant, recently acquired Geox geothermal wells and renewable energy generation assets.