Vulcan Energy Resources (ASX:VUL) has completed a Prefeasibility Study (PFS) for Project Ludwig, its proposed second phase of lithium and geothermal energy production in Germany’s Upper Rhine Valley Brine Field.
The study outlines a pre-tax net present value (NPV) of €2.6 billion ($4.21 billion) and an internal rate of return of 25% over a 30-year operating life. Project Ludwig targets production of 21,100 tonnes per annum of battery-grade lithium carbonate alongside 3,125 gigawatt hours per annum of renewable heat.
Managing Director Cris Moreno says Project Ludwig represents the strategic next step in Vulcan’s phased development of the Upper Rhine Valley Brine Field.
“We’re applying the technical, operational, and commercial blueprint of Lionheart to a second development area with similar resource and geological characteristics,” Moreno says.
“We look forward to advancing Project Ludwig using our existing blueprint in the same brine field, with the same bankable lithium extraction technology.”
“In doing so, we’re creating shareholder value without taking our focus away from delivering Lionheart. The PFS allows us to deliver on this plan.”
Located approximately 60km north of Project Lionheart, Project Ludwig demonstrates 15% lower capital intensity on an equivalent lithium carbonate (Li2CO3) basis, with total capex of €1.26 billion.
The project benefits from updated mineral resource estimates, with indicated mineral resources increasing 91% to 1,251 kilotonnes Li2CO3 @ 155 milligrams per litre lithium (Li). Inferred mineral resources increased 5% to 2,230 kilotonnes Li2CO3.
Vulcan also reported a maiden geothermal resource estimate of 193 petajoules (PJ) indicated and 295PJ inferred. Operating costs are estimated at €4,101 per tonne Li2CO3, placing the project in the lowest industry quartile.
The development concept combines lithium production with renewable heat supply for internal use and external sales. The field development plan comprises 14 production wells and 14 injection wells drilled across five sites, connected by approximately 16km of pipelines to a central lithium facility.
Vulcan aims to target an asset-level financing strategy to advance Project Ludwig to final investment decision following the start-up of Project Lionheart. The company has initiated strategic partner selection to fund appraisal, permitting, and Definitive Feasibility Study activities.
Vulcan Energy Resources is building the world’s first integrated and lithium geothermal renewable energy business to decarbonise battery production.
Write to Paula Fabe at Mining.com.au
Images: Vulcan Energy Resources
