BASF and Vulcan Partner to Explore Regional Geothermal Potential

BASF SE BASFY and Vulcan recently signed a memorandum of understanding to explore the use of geothermal energy at the chemical company's Ludwigshafen facility. The partners intend to examine prospects for capturing natural heat from deep geothermal sources to provide renewable energy capable of satisfying BASF's largest site's future base load power requirements. Frankenthal and Ludwigshafen, two nearby centers, stand to gain from the sustainable heat and are already conducting seismic studies as a first step. In addition to supplying renewable heat, Vulcan intends to generate sustainable lithium for the German and European battery and automotive industries as part of the project. The geothermally heated water in the Upper Rhine Graben contains a high proportion of this light metal, which is mostly used to make lithium-ion batteries for smartphones, laptop computers and electric vehicles. BASF would first generate steam from the heated thermal water, then Vulcan would extract lithium using a resource-efficient technique called adsorption-type direct lithium extraction.Deep geothermal energy has the potential for both industrial and district heating applications. Harnessing this energy could be a crucial step toward a successful heat transition at the local level. Vulcan and BASF are thus collaborating with regional energy suppliers - Technische Werke Ludwigshafen and Stadtwerke Frankenthal - to determine whether the geothermal energy made available by the project can be used to provide low-emission heating for households in the two urban areas they serve.The next stage will be to conduct a seismic survey to explore geothermal conditions in a subregion of the Upper Rhine Graben. Vulcan will be the active project developer, conducting the exploration and serving as the technical lead. The initial exploratory work is anticipated to start in early 2025.Shares of BASFY have lost 4.6% over the past year compared with a 6.2% rise of its industry.Image Source: Zacks Investment ResearchBASFY’s Rank & Key PicksBASFY currently carries a Zacks Rank #5 (Strong Sell).Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, DuPont de Nemours, Inc. DD and CF Industries Inc. CF. Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 160% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.The Zacks Consensus Estimate for DD’s current-year earnings is pegged at $3.88 per share, indicating a year-over-year rise of 11.5%. DD, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 12.9%. The company's shares have rallied roughly 16.9% in the past year.The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.32 per share. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missed twice, with the average earnings surprise being 10.3%. CF has rallied around 18.3% in the past year. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DuPont de Nemours, Inc. (DD): Free Stock Analysis Report CF Industries Holdings, Inc. (CF): Free Stock Analysis Report BASF SE (BASFY): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks