Vulcan Energy signs 20-year geothermal energy supply agreement with Germany’s MVV

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BERLIN, April 5 (Reuters) – Vulcan Energy (VUL.AX) has signed an agreement with Germany’s fifth-largest utility MVV Energy (MVVGn.DE) for at least 240 gigawatt hours per year of geothermal energy from 2025, the company announced. Tuesday.

Under the 20-year agreement, Vulcan Energy will supply up to 350 gigawatt hours of energy per year – enough to power around 25,000 homes – from geothermal wells in the area around the city of Mannheim, transferring the heat via networks and underground pipes to local buildings.

“Large-scale geothermal renewable energy combined with the extraction of lithium from the same geothermal source can and will play an important role in achieving energy security and independence for Europe and the Germany,” Vulcan chief executive Francis Wedin said in a statement.

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Vulcan Energy, which is listed in both Australia and Frankfurt, has secured licenses for more than 1,000 kilometers of land in southwestern Germany where it plans to mine super-hot lithium-rich brine from underground reservoirs, using heat to generate electricity and mining lithium. brine.

The company has signed contracts with automakers Volkswagen (VOWG_p.DE), Stellantis (STLA.MI) and Renault (RENA.PA) as well as Umicore and battery unit LG Chem (051910.KS) LG Energy for supply up to a combined total of 282,000 tons of lithium hydroxide over periods of five to six years.

Geothermal power has the advantage of being more stable than weather-dependent renewables, but has not seen the same growth or investment as wind and solar in the region, in part due to high upfront costs and complex drilling licensing processes.

Innargi, founded by the holding company behind shipping giant Maersk, signed a deal in January for a geothermal power plant in Denmark that it said could supply 20% of the country’s second-largest city’s heating demand, Aaarhus, from 2029. read more

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Reporting by Victoria Waldersee Editing by Madeline Chambers

Our standards: The Thomson Reuters Trust Principles.

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