Vulcan Energy (ASX:VUL) has signed a binding term sheet with automaker and mobility provider Stellantis to develop new geothermal projects in France.
The company says the geothermal projects are aimed to decarbonise the energy mix of Stellantis’ Mulhouse industrial site in France, which is home to the DS7 and Peugeot 308, and 308 SW, 508 and 508 SW, as well as the new 408 models.
Vulcan is developing integrated lithium chemicals and geothermal renewable energy production from its Zero Carbon Lithium Project in the Upper Rhine Valley in Germany and France.
The first phase of the new project will include a Prefeasibility Study (PFS) for the construction of geothermal renewable energy assets for Stellantis’ facility, conducted by Vulcan, which will also assess the potential for lithium production.
Following the first phase, the partners will focus on more advanced studies and development, with Stellantis aiming to source funding for 50% of the project development, and the parties will seek public funding for the project.
Additionally, subject to a successful PFS, both companies aim to develop the project jointly on a 50:50 basis.
Commenting on the new joint project, Vulcan Energy Chief Executive Officer (CEO) and Managing Director Dr Francis Wedin says: “While we remain focused on execution of our integrated phase one commercial lithium and renewable energy project, in the centre of the Upper Rhine Valley Brine Field, this project is a complementary opportunity to expand our future development pipeline into the French region of the Upper Rhine Valley, supported by industrial partners like Stellantis.”
“This project is a complementary opportunity to expand our future development pipeline into the French region of the Upper Rhine Valley, supported by industrial partners like Stellantis”
Additionally, Stellantis Chief Manufacturing Officer Arnaud Deboeuf says: “We are proud to announce another step in our partnership with Vulcan, which demonstrates our commitment to increase the use of decarbonised energy solutions across our facilities.
Geothermal is 1 of many solutions we explore to achieve our sustainability goals in alignment with our Dare Forward 2030 strategic plan.”
The agreement with Stellantis also increases Vulcan’s decarbonisation impact on the European electric vehicle industry, complementing the carbon avoidance from its Zero Carbon Lithium Project.
Based on current assumptions, Vulcan says the planned renewable energy project could provide a ‘significant’ portion of the industrial site’s annual energy needs starting in 2026.
Additionally, Stellantis’ strategy on decarbonisation encompasses achieving carbon net-zero by 2038, with a 50% reduction by the end of the decade.
Vulcan and Stellantis have already partnered on three separate occasions, including a lithium hydroxide supply agreement in 2021, an equity investment and another lithium hydroxide supply agreement in 2022, and a joint renewable energy project development term sheet for the Stellantis Russelsheim plant in Germany in 2023.
Vulcan Energy is an ASX-listed lithium and renewable energy producer aiming to decarbonise the transition to electric mobility through its world-first Zero Carbon Lithium Project for electric vehicle batteries and its renewable energy business.
Write to Aaliyah Rogan at Mining.com.au
Images: Vulcan Energy Resources Ltd
