Vulcan Energy Resources: “Endspurt” (final sprint to finish) for Optimisation Plant

Senior appointments to Zero Carbon Lithium™ Project execution team from oil and gas, battery and Tier One EPC industries

EPCM contracts for Phase One enter RFP stage

Vulcan Energy Resources Limited (Vulcan; ASX: VUL, FSE: VUL, the Company), the renewable energy producer and carbon neutral lithium developer, is pleased to provide a project execution update, for its Zero Carbon Lithium™ Project in the Upper Rhine Valley Brine Field, Germany. Vulcan is developing the largest lithium resource in Europe and aims to be a key enabler of Europe’s transition to electric vehicles (EVs).

Highlights:

Lithium Extraction Optimisation Plant: “Endspurt”

-          Vulcan’s Lithium Extraction Optimisation Plant (LEOP) (Figure 1), has entered the “endspurt”, or final sprint to finish, of mechanical completion, with 73 days left until the target mechanical completion date in August.

-          LEOP commissioning is thereafter targeted during September, after which it will enter full operation. This will constitute:

• the first tonnes of lithium chloride concentrate ever domestically produced in Europe, heralding the birth of a new industry in the EU; and
• the first tonnes of lithium produced using the commercially proven method of sorption-type Direct Lithium Extraction (DLE) but driven by renewable heat instead of fossil gas.

-          LEOP will supply lithium chloride to CLEOP, Vulcan’s downstream Optimisation Plant which will produce the final lithium hydroxide product. This follows 2.5 years of successful piloting testwork.

-          The purpose of Vulcan’s Optimisation Plants are three-fold:

1. to supply Vulcan’s automotive and battery customers in Europe, which include Stellantis and Volkswagen, with product for testing and qualification;
2. to serve as a training ground for operational readiness in Vulcan’s production team, led by Vulcan’s VP Production, ex-BASF executive Christian Tragut, for the start-up of the commercial Phase One of the Zero Carbon Lithium™ Project, which is also advancing;
3. to optimise process parameters in preparation for the commercial plant whilst the latter is being constructed.

Zero Carbon Lithium™ Project: Phase One commercial execution advances

-          Senior appointments have been made to Vulcan’s project execution team, from the oil and gas (O) and battery manufacturing industries, as well as Tier One international EPC organisations. Vulcan’s Zero Carbon Lithium™ Project is leveraging complementary skills from the O industry as part of the Just Transition to deliver Phase One, to complement its team of ca. 300 in-house personnel. These include:

• Senior Director Programs – Carsten Bachg - over 20 years’ experience on capital projects in the petrochemical and chemical industry for Engineering contractors, most recently Senior Director Project Delivery at Worley.
• Director Construction Commissioning – Cedric Adam - more than 20 years’ international experience in large-scale onshore and offshore O, taking plants from Engineering through Construction, Commissioning and Start-Up up to final handover to Operation Maintenance, most recently as Technip FMC Onshore Worksite Operations manager/Offshore Manger ENI Coral FLNG.
• Director PMO Project Services – Neil Davey – over 24 years’ major international capital projects experience, comprising 20 years’ for Shell, and most recently in the green energy space as Director of Project Controls in battery cathode materials for Northvolt, a battery company based in Stockholm.

-          Vulcan has entered the Request for Proposal (RFP) stage for its EPC and EPCM contracts for its integrated commercial geothermal plant and Lithium Extraction Plant (LEP) and Central Lithium Plant (CLP) to produce lithium hydroxide, which is planned for a Phase One capacity of 24,000 tonnes per annum of lithium hydroxide. Prospective contractors to meet with the Vulcan Project Execution team in Karlsruhe, Vulcan’s Germany Head office during the week of 5 June for kick off sessions.

-          Vulcan is leveraging its strong cash position of ~€164m (~$269m as at 26 May ’23) to negotiate Early Works Agreements (EWAs) and place orders for key long lead commercial plant equipment, in order to maintain rapid project momentum.

-          Monday, 12 June, the Federal Ministry for Economic Affairs and Climate Action met for a district heating summit to set the course for full heating decarbonisation by 2045. There was unanimous agreement that Geothermal potential is to be accelerated. An acceleration law will be passed, and a system of de-risking to ensure greater industry stimulation. Municipalities must now submit municipal heat plans. Vulcan is working closely with local municipalities to discuss the supply of renewable geothermal energy for heating.

Vulcan’s MD and CEO, Dr. Francis Wedin, commented: “Enabled by our strong cash position, we are making steady, methodical progress towards the execution of the Zero Carbon Lithium™ Project. With the final sprint to finish to mechanical completion of our Lithium Extraction Optimisation Plant and negotiation of key contracts for commercial Phase One, there is a hive of activity on the ground. We are fortunate to be joined by some highly motivated, highly skilled project execution professionals from the O and chemicals industries, deploying their considerable experience towards decarbonization, electrification and supply chain security in the West. Completing our Optimisation Plant and starting operations in the coming weeks and months will represent the culmination of over 5 years’ work on the Zero Carbon Lithium™ Project, and the birth of an entirely new domestic lithium industry in Germany and Europe, which we are very excited to share with our stakeholders.”  

Figure 1: Vulcan's LEOP Plant, under construction

About Vulcan

Founded in 2018, Vulcan’s unique Zero Carbon Lithium™ Project aims to decarbonise lithium production, through developing the world’s first net carbon neutral lithium business, with the co-production of renewable geothermal energy on a mass scale. By adapting existing technologies to efficiently extract lithium from geothermal brine, Vulcan aims to deliver a local source of sustainable lithium for Europe, built around a net zero carbon strategy with strict exclusion of fossil fuels. Already an operational renewable energy producer, Vulcan will also provide renewable electricity and heat to local communities.

Vulcan’s combined geothermal energy and lithium resource is the largest in Europe[1], with license areas focused on the Upper Rhine Valley, Germany. Strategically placed in the heart of the European electric vehicle market to decarbonise the supply chain, Vulcan is rapidly advancing the Zero Carbon Lithium™ Project to target timely market entry, with the ability to expand to meet the unprecedented demand that is building in the European markets.

Guided by our Values of Integrity, Leadership, Future-focused and Sustainability, and united by a passion for environmentalism and leveraging scientific solutions, Vulcan has a unique, world-leading team in the fields of lithium chemicals and geothermal renewable energy. Vulcan is committed to partnering with organisations that share its decarbonisation ambitions and has binding lithium offtake agreements with some of the largest cathode, battery, and automakers in the world.  As a motivated disruptor, Vulcan aims to leverage its multidisciplinary expert team, leading geothermal technology and position in the European EV supply chain to be a global leader in producing zero fossil fuel, net carbon neutral lithium while being nature positive. Vulcan aims to be the largest, most preferred, strategic supplier of lithium chemicals and renewable power and heating from Europe, for Europe; to empower a net zero carbon future.

Corporate Directory

Managing Director and CEO: Dr. Francis Wedin

Deputy CEO: Cris Moreno

Chairman: Gavin Rezos

Non-Executive Director: Ranya Alkadamani

Non-Executive Director: Annie Liu

Non-Executive Director: Dr. Heidi Grön

Non-Executive Director: Josephine Bush

Non-Executive Director: Dr. Günter Hilken

Non-Executive Director: Mark Skelton

Executive Director, Germany: Dr. Horst Kreuter

Company Secretary: Daniel Tydde

For and on behalf of the Board

Daniel Tydde | Company Secretary

Media and Investor Relations contact

International:

Annabel Roedhammer, Director Communications and IR | [email protected] | +49 1511 4101585

Germany:

Mareike Inhoff, Media Relations (Germany) | [email protected] | 0721 4807 02 39 / 0171 711 3860

Please contact Vulcan’s Legal Counsel Germany, Dr Meinhard Grodde, for matters relating to the Frankfurt Stock Exchange listing on [email protected] .

Reporting calendar  

Link to English original news:

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[1] According to public, JORC-compliant data. See Phase One DFS announcement, 13 February 2023.