- Vulcan Energy (VUL) is set to produce an industrial area in the City of Frankfurt with geothermal heat
- The area’s current industrial power demand comes from 80 per cent fossil fuel sources
- Vulcan is working with economics departments and state geologists to figure out the best way forward
- The industrial area Vulcan is seeking to decarbonise with cleaner power is home to one of its own future plants attached to the Rhine Valley lithium project, also using geothermal heat
- Shares last traded at $3.05
Vulcan Energy Resources (VUL) has obtained a new operating license for the company’s operations in Germany.
In partnership with the City of Frankfurt (CoF), Vulcan has concluded jointly funded research to investigate the provision of geothermal power for industrial purposes.
The move aligns with Vulcan Energy’s existing lithium project in Germany, where the company produces lithium from brines in the Upper Rhine region of Germany. Vulcan aims to use geothermal power to make the process carbon-neutral.
Additionally, Vulcan is now looking to potentially supply heat to industrial operators in the CoF, including Hochst Chemical Park and Frankfurt Airport.
The new license, named Luftbrücke, is located in an industrial area with high heat demand, where total energy consumption reaches between six to 12 terawatt hours of heat per year.
Currently, up to 80 per cent of the heat generated in the area comes from fossil fuels. Frankfurt has set a goal to achieve “carbon neutrality” by 2035, and the German Federal Government has commissioned 100 new geothermal projects by 2030.
In a beneficial synergy, the Luftbrücke license is in proximity to Vulcan’s existing Central Lithium Plant (CLP) development.
“We have a strong presence already in the region as we progress towards commissioning of our Central Lithium Electrolysis Optimisation Plant located in Höchst Chemical Park, which will also be the location of our Central Lithium Plant for our Phase One commercial operations,” VUL CEO Cris Moreno said.
“We look forward to growing our relationship with the Frankfurt region and its stakeholders to support their energy transition to meet their carbon neutral goals by 2035.”
Further testing is underway, with Vulcan collaborating with German authorities, including the Hessian Ministry of Economics and the state’s geological survey, to determine the best way to provide geothermal heat.
VUL shares last traded at $3.05.