Vulcan Energy signs 35-year geothermal heat offtake with Landau, Germany
Vulcan Energy has entered into a 35-year offtake agreement to supply geothermal heat to the district heating network in Landau, Germany.
Vulcan Energy has signed a 35-year heat offtake agreement with municipal utility company Energie Südwest (ESW) for the supply of geothermal heat to various district in the Landau area in Germany. The heat will be supplied from the existing Landau Süd production centre owned and operated by Vulcan, and the Geothermal and Lithium Extraction Plant (G-LEP) to be built as part of Vulcan’s Phase One project.
The offtake agreement comes just after the commencement of geothermal heat supply to ESW from Vulcan’s existing geothermal wells earlier this year. Vulcan has also started drilling operations at the Schleidberg site to expand the supply of geothermal heat with plans to drill five additional production wells.
The 35-year term can be extended by five years should the agreement not be terminated without cause on four years notice. Moreover, a non-binding cooperation framework agreement was signed to set out basic conditions for further heat offtake agreements with surrounding municipalities to be concluded in the future.
ESW will be responsible for expanding the district heating network. The first expansion phase, at a cost of EUR 20 million, is already underway. Around 320 households are currently connected to the network. According to CEO Thomas Waßmuth, the company expects to connect new customers to the district heating system by 2027.
Source: Vulcan Energy via ASX and SWR
