Image source: Shutterstock

Highlights

  • Vulcan receives building permits for a 30MW geothermal energy plant and substation at its Lionheart Project in Landau.

  • The plant will supply renewable baseload energy to both the grid and Vulcan’s lithium operations, enabling carbon-neutral production.

  • Backed by Germany’s €100bn Climate and Transformation Fund, geothermal energy gains national priority.

Vulcan Energy Resources (ASX:VUL, FSE:VUL) has announced a key milestone in the development of its Phase One Lionheart Project, with the receipt of building permits for a 30-megawatt (MW) geothermal renewable energy plant and accompanying electrical substation. The Lionheart Project aims to integrate lithium production and conversion with renewable energy generation to supply Europe’s rapidly expanding battery electric vehicle industry.

The newly approved geothermal plant will be constructed in Landau, Germany, and is designed to supply clean, baseload renewable power. This energy will be directed both to the public grid and to Vulcan’s operations, where it will support the production of lithium without the use of fossil fuels. The company emphasised that this approach will allow it to maintain a carbon-neutral footprint in its lithium production process.

Vulcan is already operating a smaller 4.8MW geothermal facility in Germany, which currently supplies renewable electricity to approximately 6,500 homes. Additionally, the company sells geothermal heat from a separate location, further underlining its expertise in clean energy generation.

The Lionheart Project is central to Vulcan’s strategy of vertically integrating lithium extraction with renewable energy to create a sustainable, local source of lithium for the European battery supply chain. The project is located in the Upper Rhine Valley, a region that has become a focal point for geothermal energy development in Germany.

Vulcan believes geothermal energy is uniquely positioned to contribute to Europe’s renewable energy targets, offering reliable baseload electricity with high operational availability. The technology also plays a key role in grid stability due to the rotational inertia generated by its turbines—an advantage not typically found in solar or wind energy systems.

Recent policy developments in Germany are expected to further accelerate the progress of geothermal projects like Lionheart. The newly formed German Federal Coalition has committed to creating a €500 billion Special Infrastructure Investment Fund, of which €100 billion will be channelled into the Climate and Transformation Fund (KTF). This fund is designed to finance renewable energy infrastructure, including geothermal projects, and is accompanied by proposals for a new Geothermal Acceleration Act to improve project approval timelines and regulatory frameworks.

Vulcan’s Managing Director and CEO, Cris Moreno, welcomed the development, stating, “This is a significant development for our planned geothermal and lithium extraction plant and reflects Germany’s commitment to develop local, renewable sources of energy. We plan to produce battery-quality lithium products from the same geothermal brine that is used to produce renewable energy for local use.”