Vulcan Energy Resources has signed its first geothermal energy offtake agreement at its Zero Carbon lithium project, in Germany.
The company aims to produce both renewable geothermal energy and lithium hydroxide from the same deep brine source at its operations in Germany.
Vulcan on Wednesday announced that it had inked a supply agreement with German energy company MVV for the supply of 240 gigawatt hours a year of renewable hear, with the 20-year offtake agreement to start in 2025.
The offtake agreement would cover a minimum of 240 000 MWh a year to a maximum 350 000 MWh a year, with the heat to be supplied from Vulcan’s planned geothermal wells in the area surrounding the city of Mannheim. Heat will be transferred via heating grids and a series of underground pipes that deliver hot water or steam to buildings in the local community.
“Vulcan is committed to playing a leading role in Germany’s “Wärmewende”, or heat transition as the country looks to reduce its reliance on Russian energy. This agreement represents a real and immediate step taken by a German energy utility to achieve energy security whilst not compromising on climate goals,” Vulcan MD Dr Francis Wedin said.
“We believe that geothermal renewable energy on a mass scale, combined with lithium extraction from the same deep geothermal source, can and will play an important part in achieving Europe and Germany’s energy security and independence. We are proud to partner with MVV, a leader in German energy supply, dedicated to making a lasting and sustainable contribution to the local community through the provision of renewable energy and heat.
“Our binding offtake agreement for regional geothermal energy positions MVV to deliver secure, sustainable, economical and environmentally friendly heating for its industrial, commercial and private household customers. Vulcan intends to build several further distributed geothermal renewable energy plants across the Upper Rhine Valley region and we are in discussions with other regional communities regarding additional heat offtake agreements.”