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- Vulcan Energy (VUL) inks an agreement with Stellantis to develop geothermal renewable energy to supply Stellantis’ Mulhouse industrial site in France
- It marks the fourth agreement signed by Vulcan with major shareholder Stellantis since 2021
- VUL MD and CEO Dr Francis Wedin says while the company’s focus remains on its integrated phase one commercial lithium and renewable energy project, this agreement offers a complementary opportunity to expand its presence in France
- The news coincides with the French Government’s recent announcement of a strategic investment program in critical domestic raw materials and renewable energy production
- Shares in VUL are down 1.88 per cent and trading at $3.65 at 11:430 am AEST
Vulcan Energy Resources (VUL) has entered an agreement with Stellantis to develop geothermal energy to supply Stellantis’ Mulhouse industrial site in France.
It marks the fourth agreement signed by the company with its major shareholder Stellantis since 2021, and the second of its kind that concerns geothermal energy.
Vulcan Energy Managing Director and CEO Dr Francis Wedin said the agreement offers a complementary opportunity to expand its presence in France.
“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,” he said.
The agreement also coincides with the nation’s recently announced strategic investment program in critical domestic raw materials and renewable energy production.
Stellantis, a top five global auto manufacturer, has set out a decarbonisation strategy that includes achieving carbon net zero by 2038, with a 50 per cent reduction by the end of the decade.
Vulcan reported that based on current assumptions, the planned renewable energy project could provide a significant portion of the industrial site’s annual energy needs, starting in 2026.
“Vulcan’s core mission is decarbonisation, through renewable energy and carbon-neutral lithium supply,” Dr Wedin said.
“Vulcan is here to support Stellantis, our largest lithium customer and one of our major shareholders, to decarbonise its operations in Europe.”
Stellantis Chief Manufacturing Officer Arnaud Debouefu said the agreement with Vulcan was another step toward achieving its goal.
“We are proud to announce another step in our partnership with Vulcan, which demonstrates our commitment to increase the use of decarbonized energy solutions across our facilities,” he said.
“Geothermal is one of many solutions we explore to achieve our sustainability goals in alignment with our Dare Forward 2030 strategic plan.”
The agreement also marks the first joint project in France for the potential use of geothermal renewable energy to decarbonise and localise the energy supply for Stellantis’ European operations.
The multi-phase project includes a pre-feasibility study (PFS) for the construction of geothermal renewable energy assets for Stellantis’ facility, carried out by Vulcan, which would also assess the potential for lithium production.
If successful, Vulcan’s next phase would focus on more advanced studies and development.
The company reported that subject to a successful PFS, Stellantis and Vulcan would then develop the project jointly on a 50:50 basis.
The goal of both parties is to produce clean, renewable energy for internal consumption at Stellantis’ manufacturing site.
It marks another significant milestone for Vulcan, which is aspiring to become Europe’s leading zero carbon lithium business and enable energy security through geothermal energy.
Shares in VUL were down 1.88 per cent and trading at $3.65 at 11:30 am AEST.
