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Vulcan Energy (ASX:VUL) has today locked down a major contract with Turboden and ROM Technik to deliver the engineering, procurement, and construction of its Phase One geothermal power plant in Landau, Germany.
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The contract, which comes out at €110 million, will see Turboden share its expertise in Organic Rankine Cycle systems. ROM Technik, meanwhile, is set to manage contractors and oversee any required installation services.
Between the two parties, Vulcan expects this deal to cover the full scope of EPC services; the deal has been drawn up on a fixed lump-sum turnkey basis.
Once work is completed, the Australian energy producer’s geothermal power plant is expected to deliver 275 gigawatt hours of renewable energy and produce 24,000 tonnes of lithium hydroxide each operating year.
HotCopper understands that output, run on brine, equates to enough lithium to supply batteries for around 500,000 electric vehicles annually.
“This is a key component of our operation,” Vulcan’s managing director, Cris Moreno, said. “This is yet another milestone in our aim to deliver a local, low-cost source of sustainable lithium for the European battery supply chain.”
The EPC contract includes civil works, site preparation, and the building of key infrastructure ranging from turbines, pumps, heat exchanges, and any “associated equipment” the company may decide it needs.
The agreement will only take effect once Vulcan finalises financing, which the explorer says should be all locked away by the end of the calendar year.
“Securing the services of both Turboden and ROM Technik, who are both leaders in their respective fields, will underpin the construction of the geothermal power plant,” Mr Moreno explained. “We are fully confident in their ability to execute, having delivered similar type projects in Germany and globally.”
VUL last sold at $5 a share after a slight -1.38% dip to Thursday close.
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