November 22nd, 2024 | 07:00 CET
BASF, F3 Uranium, Amazon - From geothermal energy to uranium: Three companies shaping the future of energy
The global energy transition is taking concrete shape: chemical giant BASF and Australian geothermal specialist Vulcan Energy are forging a groundbreaking alliance for green heat and lithium production in Ludwigshafen. The momentum in the energy sector is further strengthened by the nuclear power renaissance. F3 Uranium is positioning itself with high-grade uranium discoveries in Canada's Athabasca Basin to capitalize on the upcoming demand boom. The expected doubling of uranium demand by 2030 and the planned strategic uranium reserve in the US from 2025 promise strong growth for the sector. Meanwhile, tech giant Amazon is securing its future power supply in the European market by investing billions in Greek wind farms. These developments highlight how large corporations are driving the transformation of energy supply systems.
time to read: 4 minutes
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Author:
Juliane Zielonka
ISIN:
BASF SE NA O.N. | DE000BASF111 , AMAZON.COM INC. DL-_01 | US0231351067 , F3 URANIUM CORP | CA30336Y1079
Table of contents:
"[...] Internally we expect the resource to significantly grow the deeper we mine. [...]" Dennis Karp, Executive Chairman, Manuka Resources
Author
Juliane Zielonka
Born in Bielefeld, she studied German, English and psychology. The emergence of the Internet in the early '90s led her from university to training in graphic design and marketing communications. After years of agency work in corporate branding, she switched to publishing and learned her editorial craft at Hubert Burda Media.
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BASF and Vulcan Energy forge alliance for green transformation in Ludwigshafen
The chemical company BASF (ISIN DE000BASF111) and the Australian geothermal and lithium specialist Vulcan Energy Resources are deepening their collaboration at the German Ludwigshafen site. The joint project "Ludwigsland Development" plans to generate 2,000 to 2,500 GW of heat annually, which should cover a significant portion of BASF's heat requirements. The entire project with Vulcan Energy also offers the potential to supply households in the surrounding cities with energy, thus contributing to the regional energy transition.
The collaboration fits seamlessly into BASF's new "Winning Ways" strategy, which aims to green the Company's transformation. In October, BASF received a funding notice from the German government for EUR 310 million for the construction of an industrial heat pump for CO₂-free steam generation. This funding is part of a EUR 2.8 billion program to support decarbonization projects in Germany.
In addition to the heat supply, the partners plan to build a lithium extraction plant on the BASF site in Ludwigshafen. This will produce lithium salts for electric vehicle battery production. Vulcan Energy will act as project developer and operator of both the heat and lithium production plants. Despite the good news, the stock is struggling at a current price of EUR 41.98.
F3 Uranium drills for success: 127% surge in demand boosts uranium market
The US is on the verge of an energy policy shift: From 2025, the expected Trump administration plans to build up a strategic uranium reserve with an annual budget of USD 150 million. Even President Biden signed a declaration in mid-2024 to halt uranium imports from Russia. In this changing market environment, F3 Uranium Corp. is positioning itself as a promising uranium producer for the future.
The Canadian exploration company F3 Uranium (ISIN CA30336Y1079) has an impressive track record in the Athabasca Basin. The latest drill results from the PLN project show uranium grades of up to 7.6% U3O8 over 12 meters. The strategic importance of the Company is underscored by Denison Mines' recent investment of CAD 15 million.
The market outlook for uranium appears extremely robust: demand is expected to increase by 127% by 2030 and by 200% by 2040. The US Department of Energy plans an aggressive expansion of nuclear power with 13 GW of additional capacity per year. According to the data in F3 Uranium's investor presentation, this development could lead to a deficit of approximately 240 million pounds of uranium in 2040, which the Company could exploit to its advantage.
The strategic location in the Athabasca Basin, known for the highest uranium grades in the world, and a management team with three significant uranium discoveries in the region make the Company an interesting candidate for risk-taking investors looking to capitalize on the nuclear energy renaissance.
Amazon drives Greece's energy transition with billion-dollar investment
US technology group Amazon (ISIN US0231351067) is strengthening its commitment to the Greek wind energy market with the country's largest-ever investment in renewable energy. The Company is underlining its role as a leading global purchaser of clean energy by signing four power purchase agreements (PPAs) for three new wind farms.
The Vermio North and Vermio South projects in Western and Central Macedonia, as well as the Mesokorfi and Koukouras wind farms in the Peloponnese region of southern Greece, are being developed by Aer Soleir. The projects are expected to be operational by 2026, at which point they will produce enough electricity for around 200,000 households. The total investment volume amounts to more than USD 1 billion.
The timing of Amazon's investment appears favorable: Greece is currently experiencing a real wind energy boom. In 2021, installed onshore wind power capacity already reached 4,451 MW, an increase of 8.2% over the previous year. lowcarbonpower.org/de/region/Griechenland The country plans to expand its wind power capacity to 7 GW by 2030.
"The collaboration between Aer Soleir, the National Bank of Greece, and Amazon is a groundbreaking commitment to Greece's renewable energy future," emphasizes Energy Minister Theodoros Skylakakis. Amazon itself has already achieved its original goal of meeting its entire electricity needs from renewable sources in 2023 – seven years ahead of schedule.
With its "Winning Ways" strategy and the Vulcan Energy collaboration, BASF is consistently pursuing a green transformation. Geothermal and lithium production in Ludwigshafen, supported by government funding of EUR 310 million, makes the site a pioneer in sustainable chemical production in Europe. BASF is thus demonstrating that industrial transformation and climate protection can go hand in hand. F3 Uranium is emerging as a key player in the growing uranium market. With high-grade discoveries in the Athabasca Basin, a strategic investment by Denison Mines and a clear focus on the PLN project, F3 Uranium is ideally positioned for the expected boom in demand. The predicted doubling of uranium demand by 2030 and the planned US uranium reserve promise significant growth potential. Amazon is expanding its renewable energy footprint in the European market by investing billions in wind farms in Greece. Four power purchase agreements for projects with a capacity for 200,000 households demonstrate Amazon's commitment to sustainable energy. The Company has already achieved its goal of being fully powered by renewable energy seven years ahead of schedule.
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