Vulcan Energy has entered a major renewable heat offtake agreement with German municipal energy supplier EnergieSüdwest AG. In a signing ceremony that included representatives from Vulcan Energy, EnergieSüdwest, and the Mayor of Landau, the company confirmed that it will supply geothermal heat to various districts in the Landau area over a 35‐year term, with an option to extend for an additional five years. This agreement follows the recent start of renewable heat supply from Vulcan’s existing geothermal wells in Landau, illustrating the company’s ongoing commitment to boosting sustainable energy use. Under the terms of the arrangement, Vulcan Energy will provide three distinct heat products: a standard district heating inlet at 95°C, high temperature heat at 150°C for specialized applications, and low temperature heat at 60°C. The heat supply will be sourced from different production sites, including the current Landau Süd centre and a new Geothermal and Lithium Extraction Plant planned at the D12 industrial site, which is subject to confirming land acquisition and building permit conditions. The contract also features a pricing structure combining a monthly fixed price, a variable component, and annual price adjustments in line with the consumer price index and other relevant factors. Heat purchases are structured to increase over time, starting at 25 GWh and potentially reaching 595 GWh by 2042. The initiative is a central part of Vulcan Energy’s integrated development strategy for its Lionheart Project, which combines lithium extraction with renewable geothermal energy to promote decarbonization. The project is supported by significant funding, including a €100 million grant from the German Federal Ministry of Economics and Climate Protection, and aligns with upcoming legislation in Germany aimed at accelerating geothermal energy development. The broader ambition is to help Germany meet rapid renewable energy targets, contributing to the country’s goal of producing 10TWh of geothermal energy by 2030 and 300TWh by 2050. Market sentiment from this development could be seen as bullish due to the long-term nature of the contract, the involvement of key municipal stakeholders, and the alignment with governmental initiatives that favor renewable energy investment. For beginner traders, these elements suggest a stable cash flow and a clear policy backing, which are positive indicators for long-term growth. On the other hand, some caution is warranted. The project’s success remains somewhat dependent on regulatory approvals, acquisition of necessary permits, and the successful construction and commissioning of additional production sites. Any delays or cost overruns could introduce risks, which may temper immediate enthusiasm. Overall, the announced agreement reflects Vulcan Energy’s strategic move towards integrating low-carbon renewable heat into regional energy systems, reinforcing its position in the renewable energy market while addressing climate goals and energy security in Germany.