- Vulcan Energy Resources (VUL) strikes a 20-year deal with German energy provider MVV Energie for the supply of at least 240,000 MWh of renewable heat a year to Mannheim
- The deal commences in 2025, with Vulcan to supply the renewable heat to the area from its planned geothermal wells surrounding Mannheim, which lies just outside Frankfurt
- The deal is part of MVV’s strategy to become climate-neutral by 2040 before becoming one of Germany’s first energy companies to be climate-positive
- Vulcan Managing Director Francis Wedin says the company plan to build several other geothermal renewable energy plants across Germany’s Upper Rhine Valley region
- Shares in Vulcan Energy Resources are up 0.1 per cent to $10.18
Vulcan Energy Resources (VUL) has struck a 20-year deal with German energy provider MVV Energie for the supply of at least 240,000 megawatt-hours (MWh) of renewable heat per year to the city of Mannheim.
The deal is set to commence in 2025, with Vulcan to supply a minimum of 240,000 MWh and a maximum of 350,000 MWh of heat to the area from its planned geothermal wells surrounding Mannheim, which is just outside Frankfurt.
Vulcan said the deal was part of MVV’s strategy to become climate-neutral by 2040 before becoming one of the first energy companies in Germany to be climate-positive. MVV, which is 50.1 per cent owned by the City of Mannheim, is the biggest municipal energy supplier in the country.
Vulcan Managing Director Francis Wedin said the company was committed to playing a leading role in Germany’s heat transition as it looked to reduce its reliance on Russia for 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,” Dr Wedin said.
“We believe that geothermal renewable energy on a mass scale, combined with lithium extraction from the same geothermal source, can and will play an important part in achieving Europe and Germany’s energy security and independence.”
He said Vulcan was planning to build several other geothermal renewable energy plants across Germany’s Upper Rhine Valley region and, as such, was in discussions with other regional communities about potential heat offtake deals.
Meanwhile, MVV tech executive Hansjörg Roll said the Vulcan heat supply deal aligned with MVV’s “Beyond Carbon Zero” strategy.
“This long-term agreement with Vulcan secures us substantial volumes of heat from renewable sources — for the good of our climate and for greater security of supply,” Dr Roll said.
MVV employs over 6500 people and generates annual revenue of around €4.1 billion (A$5.9 billion), according to Vulcan.
Shares in Vulcan Energy Resources were up 0.1 per cent to $10.18 at 12:17pm AEST. The company has a $1.34 billion market cap.