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- Vulcan Energy (VUL) agrees to purchase two electric drill rigs as part of the company’s Zero Carbon Lithium Project
- The geothermal rigs give Vulcan the potential to generate renewable energy for local communities in Germany at a critical time for decarbonisation in Europe
- Drilling with these rigs will ensure it is conducted with minimum greenhouse gas emissions
- This purchase will help with the overall project that is targeting phase one production in 2024
- On the market this morning, Vulcan is down 2.96 per cent and is trading at $10.16 per share
Vulcan Energy (VUL) has agreed to purchase two electric drill rigs as part of the company’s Zero Carbon Lithium Project.
The specialised rigs will be able to drill to the targeted depth needed for the deep geothermal energy wells in the Upper Rhine Valley, Germany.
The geothermal rigs give Vulcan the potential to generate renewable energy for local communities in Germany at a critical time for decarbonisation in Europe.
Drilling with these rigs will ensure it is conducted with minimum greenhouse gas emissions, which is in line with Vulcan’s strict carbon neutral focus.
Vulcan will pay for the rigs through the recently completed $200 million placement.
This purchase will help with the overall project that is targeting phase one production in 2024, with the rigs being operational in late 2022.
Managing Director Francis Wedin said the acquisition of the electric drill rigs is an important step in advancing the Zero Carbon Lithium Project towards production.
“Funded with a portion of the proceeds from our recent $200 million capital raising, which was strongly supported by existing and new institutional investors, the acquisitions will demonstrate our willingness and ability to capitalise on strategic opportunities to ensure timely project development,” Dr Wedin said.
“Consistent with our strategy to evaluate the production and sale of heat as well as power from our planned geothermal projects, the deep geothermal rigs will give us the potential to generate renewable energy, as we continue discussions with multiple local stakeholders to provide renewable heating to communities and renewable power to the German grid.”
On the market this morning, Vulcan was down 2.96 per cent and is trading at $10.16 per share at 11:28 am AEDT.
