Vulcan Energy (Vulcan, ASX: VUL, FSE: VUL, the Company) is pleased to announce it1 has officially signed a heat offtake agreement with German municipal energy supplier, EnergieSüdwest AG (ESW), for the supply of geothermal renewable heat from Vulcan's Lionheart Phase One Project.
Key highlights
Key highlights
- The agreement was signed in a ceremony attended by representatives from the Company, ESW, and Mayor of the City of Landau, Dr Dominik Geißler
- Under the terms of the agreement, the Company has agreed to supply various districts in the Landau area with geothermally generated heat produced from several production sites, which make up Vulcan's Phase One Project, for a period of 35 years
- The signing follows the commencement of renewable heat supply to ESW in April 2025 from the Company's existing geothermal wells in Landau, directly into the neighbouring ESW heating system
- The agreement forms part of the Company's integrated lithium and renewable energy development, Phase One Lionheart Project, and reflects Germany and Europe's broader commitment to develop local, renewable sources of energy
- To further expand the supply of renewable heat and provide sustainable energy to more households and businesses in Landau, the Company plans to complete five additional production well sites as part of the HEAT4LANDAU Project2, which awarded the Company a 100m grant from the German Federal Ministry of Economics and Climate Protection in November 2024
- The Company is already commercially producing geothermal, baseload power in Germany for 6,500 homes. Production of renewable heat will gradually ramp up as part of Vulcan's Phase One Project
- The agreement underscores the significance of the planned Geothermal Acceleration Act in Germany which aims to benefit geothermal operators, federal states, and local authorities by accelerating the development of geothermal energy. The Act is expected to become law by early 2026, supporting Germany's goal of generating 10TWh of domestic geothermal energy production by 2030 and 300TWh by 2050, to meet a quarter of Germany's annual heating demand, key to Europe's broader climate protection target3
- Additionally, a non-binding cooperation framework agreement was signed, which sets out the basic conditions for further heat offtake agreements with surrounding municipalities to be concluded in the future.
1 Through its wholly owned subsidiary, Naturlich Südpfalz GmbH & Co KG (NSG).
2 Funded by the European Union - NextGenerationEU. The expressed Views and opinions expressed are solely those of the author(s) and do not necessarily reflect the views of the European Union or the European Commission. Neither the European Union nor the Euro pean Commission can be held responsible for them.
3 Roadmap for Deep Geothermal Energy for Germany, 10 October 2022, https://doi.org/10.24406/publica-248
2 Funded by the European Union - NextGenerationEU. The expressed Views and opinions expressed are solely those of the author(s) and do not necessarily reflect the views of the European Union or the European Commission. Neither the European Union nor the Euro pean Commission can be held responsible for them.
3 Roadmap for Deep Geothermal Energy for Germany, 10 October 2022, https://doi.org/10.24406/publica-248
Vulcan Energy's Managing Director and CEO, Cris Moreno, commented: "The signing of these agreements with ESW marks an important step toward sustainable, long-term district heating, reducing reliance on fossil fuels while supporting regional energy independence and climate goals.
This initiative signals the beginning of a broader transition to renewable geothermal energy in Landau, with the potential to significantly cut CO emissions and set a precedent for other communities."
