Vulcan Energy Resources Limited / AU0000066086

Vulcan and BASF announce partnership to reduce CO2 emissions at world’s largest integrated chemical complex  Vulcan Energy has entered into a staged agreement with BASF SE (BASF) to collaborate on the development of a renewable heat project to supply BASF with baseload heat. Further, the agreement incorporates the potential construction of a commercial Lithium Extraction Plant in Ludwigshafen, BASF’s global headquarters and home to the largest integrated chemical complex globally.   Approximately 2000–2500 GWh/a of heat generation is targeted from the Ludwigsland Development Project from an integrated renewable heat and lithium brine operation, representing a significant amount of the heat demand of BASF. Vulcan and BASF plan to evaluate the possible construction and operation of a Lithium Extraction Plant on BASF premises within the Verbund site Ludwigshafen to produce lithium salts concentrate following energy production from the hot brine. This would then be transported to Vulcan’s Central Lithium Plant in Frankfurt (Höchst) to produce battery grade lithium hydroxide for Europe’s electric vehicle market. Vulcan will be the active project developer and integrated operator across the heat and lithium production facilities and would retain 100% ownership of the lithium production.  Beyond reducing CO2 emissions of BASF’s Verbund site Ludwigshafen operations, the geothermal opportunity extends to the potential for district heating to supply households in nearby cities. BASF is collaborating with regional energy providers as associated partners - Technische Werke Ludwigshafen and Stadtwerke Frankenthal - to evaluate the feasibility of energy supply to the two cities, representing a major step toward sustainable, low-emission heating for local communities. BASF will jointly fund the geothermal exploration as the first phase of the project. Assuming the first phases of the project including seismic campaigns, exploratory well and doublet drilling are successful, and the partners decide to proceed with the project, BASF will be the heat offtaker for 100% of the geothermal heat all year round.