Global Geothermal Power: Policies, Funding, Wells, Strengths, Opportunities and Barriers Geothermal is moving into a broader investment cycle. In 2026, the story is no longer limited to volcanic power plants in a few classic markets; it now includes enhanced geothermal systems, closed-loop designs, district heating, superhot rock, lithium from brines and industrial heat. Across the United States, Canada, Germany, the United Kingdom, Australia, New Zealand, Japan, Iceland, France and Italy, the sector is being shaped by a simple question: who is de-risking the first wells, and who is ready to finance the next ones? United States: the next-generation testbed The United States has the broadest geothermal innovation ecosystem in this group, with a mature conventional base in the West and a fast-growing next-generation pipeline. The main policy signal in 2026 is the Department of Energy’s US$171.5 million funding opportunity for next-generation geothermal field-scale tests, exploration...
Vulcan Energy Advances Lionheart Project with Drilling of Second Production Well at Schleidberg Site
Vulcan Energy Advances Lionheart Project with Drilling of Second Production Well at Schleidberg Site
Posted by Alphaxioms Geothermal News | February 19, 2026
In the rapidly evolving world of renewable energy and sustainable resource extraction, few projects capture the imagination quite like Vulcan Energy Resources' Phase One Lionheart Project in Germany's Upper Rhine Valley. This innovative endeavor combines geothermal energy production with the extraction of battery-grade lithium from deep geothermal brines, offering a low-carbon, domestic solution to Europe's growing demand for critical minerals in the electric vehicle (EV) revolution.
The latest milestone comes from Vercana GmbH, Vulcan's in-house drilling subsidiary. In a recent update shared on social media, Vercana announced the commencement of drilling for the second production well, designated LSC-2, at the Schleidberg site. This follows the successful completion of testing at the first new well, LSC-1 (including its sidetrack LSC-1b), and a smooth transition of the V20 drilling rig to the next phase.
The post highlighted the teamwork involved: "Thank you to the Vercana and Vulcan teams, for delivering a safe and efficient start to LSC-2." Accompanied by an impressive photo of the drilling crew gathered around the massive drill bit, the image underscores the human element behind this high-tech operation—workers in high-visibility gear proudly posing with the equipment that is literally tapping into the Earth's heat and resources.
The Lionheart Project: A Dual-Purpose PowerhouseResearched and Written by Alphaxioms.blogspot.com
The Lionheart Project represents a groundbreaking approach to resource development. Located in the Upper Rhine Graben—a geologically active rift zone rich in hot geothermal brines—Phase One aims to produce 24,000 tonnes per annum of lithium hydroxide monohydrate (LHM), sufficient to supply batteries for approximately 500,000 electric vehicles each year. As a co-product, the project will generate significant renewable energy: around 275 GWh of electricity and 560 GWh of heat annually over a projected 30-year lifespan.
What sets this apart from traditional lithium mining is its sustainability profile. Instead of open-pit mining or evaporation ponds that consume vast amounts of water and energy, Vulcan uses a closed-loop system. Hot brine is pumped from deep reservoirs (typically several kilometers underground), where it naturally contains dissolved lithium. The heat drives geothermal power generation via Organic Rankine Cycle (ORC) technology—supplied by partners like Turboden for a 32 MWe plant—before the lithium is extracted using proven direct lithium extraction (DLE) methods. The cooled, depleted brine is then reinjected, minimizing environmental impact and maintaining reservoir pressure.
This integrated model not only produces zero-direct-emission lithium but also delivers baseload renewable power and heat to local communities. Vulcan already operates the NatürLich Insheim geothermal plant in the area, which has been supplying carbon-neutral electricity to about 6,500 households since before the company's major expansion.
Drilling Progress: From LSC-1 to LSC-2
The Schleidberg site near Landau has become a focal point for Vulcan's field development plan (FDP). The first new well, LSC-1, was completed with sidetracks (LSC-1a and LSC-1b) to optimize reservoir access. Production testing on LSC-1b showed excellent results: flow rates of 105–125 liters per second under operational drawdown, with a productivity index of 2.1–2.5 liters per second per bar. These figures align with or exceed the expectations in Vulcan's FDP, confirming strong reservoir quality, lithium grades (around 181 mg/L on average in the area), permeability, and heat content.
The smooth skidding of the V20 rig—moving it efficiently from one well pad position to the next—allowed operations to transition directly into drilling LSC-2 without delays. This efficiency is crucial for a project that plans up to 24 production and injection wells in Phase One. Drilling is expected to continue through 2026, potentially with a second rig mobilized later in the year.
Vercana's role here is noteworthy. Established as Vulcan's dedicated geothermal drilling company, it addresses the specialized needs of deep, high-temperature wells in geothermal environments. Partnerships with firms like Odfjell Technology for tubular running services further enhance operational capabilities.
Broader Implications for Europe’s Energy and Materials Security
Europe faces a critical challenge: securing lithium supplies for the booming EV and battery sector while reducing dependence on imports from regions with higher environmental and geopolitical risks. The Lionheart Project directly tackles this by creating a local, sustainable supply chain. Backed by major financing—including €250 million from the European Investment Bank (EIB) and a total package approaching €2.2 billion—the project received its Final Investment Decision (FID) in late 2025.
Key contractors like ABB (electrical infrastructure), Turboden (geothermal power plant), and ACS Group/Sedgman/HOCHTIEF (lithium plants) are involved, ensuring world-class execution. The project's strategic importance has earned support as part of the EU's push for raw material autonomy and decarbonization.
Geothermal energy itself gains momentum in Germany, where the government aims to expand capacity significantly. With 36 plants already operating and more in development, projects like Lionheart demonstrate how geothermal can provide reliable, renewable baseload power alongside valuable mineral extraction.
Challenges and the Path Forward
While progress is impressive, challenges remain. Deep drilling in geothermal settings requires precision to handle high temperatures, pressures, and potential formation issues. However, Vulcan's experience with existing wells and positive test results from LSC-1b bode well. Commercial lithium production is targeted for 2028, with upstream facilities like the Geothermal Lithium Extraction Plant (G-LEP) under construction.
The Lionheart Project exemplifies how innovation can align economic, environmental, and energy security goals. By turning geothermal brines into dual streams of renewable energy and critical materials, Vulcan is pioneering a model that could inspire similar developments worldwide.
As drilling advances at Schleidberg, the geothermal and lithium communities watch closely. This is more than a project—it's a step toward a cleaner, more self-reliant future for Europe's green transition.
Stay tuned to Alphaxioms Geothermal News for more updates on this and other geothermal advancements.
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