Join our daily newsletter At The Bell to receive exclusive market insights
- Vulcan Energy (VUL) is set to see its German-based geothermal-powered Zero Carbon Lithium production assets receive full financing in November
- The company has permission to commence building key downstream assets in a nearby industrial area
- Components for a critical optimisation plant have been built off-site ensuring its assembly is a matter of logistics and not engineering, de-risking project timelines
- A bridging study is being completed which has identified ways for Vulcan to boost yearly production
- VUL shares last traded at $3.41
Vulcan Energy (VUL) has announced that its Germany-based Zero Carbon Lithium project is on track to secure full project financing by as early as November.
An ongoing bridging study, crucial to phase one of the project, has reached 80 per cent completion and serves as the key document validating Vulcan’s commitment to producing carbon-free lithium in Europe.
Specifically, the company is targeting lithium brine fields in the Upper Rhine region of Germany, which boasts geothermal resources capable of enabling renewable-powered lithium extraction and production.
Privately held services provider Hatch is also assisting with the bridging study, the same company that played a pivotal role in Vulcan’s pre-feasibility and definitive feasibility studies, respectively.
“Several key value improvements not included in the DFS from February have been identified, including driving further economies of scale,” the company wrote.
The original plan to construct two lithium extraction plants (LEPs) and two geothermal power plants has been revised to consolidate both assets into one each.
Now, the project envisions a central LEP and geothermal power plant with a capacity of 24,000 tonnes per annum of lithium hydroxide equivalent.
Production is being ramped up in the bridging study, with Hatch and Vulcan focusing on the core proven resource area around Vulcan’s existing production and re-injection wells.
Vulcan intends to re-inject spent brine back underground, enhancing its ESG credentials – a welcome addition for investors, given that Vulcan already claims the title of Europe’s largest lithium resource.
The second component critical to achieving carbon-free lithium, the Central Lithium Electrolysis Optimisation Plant (CLEOP), is also progressing as planned.
The project has received a building permit to establish this facility at the Frankfurt Hoechst chemical park, with “chemical park” being the regional term for an industrial area.
Each component of CLEOP has been constructed off-site, making its assembly largely modular and reducing overall risk compared to on-site manufacturing.
The early stages of construction are set to commence before 2024, while the lithium extraction optimisation plant is already in the commissioning phase and on track for completion next month.
VUL shares last traded at $3.41.
