The Cesano license area will become co-owned 50:50 by Vulcan and EGP as part of the agreement. Pic: Jupiterimages / The Image Bank via Getty Images.
Vulcan teams up with Italy’s largest geothermal energy player
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Vulcan Energy Resources is joining forces with Italy’s largest geothermal energy producer Enel Green Power (EGP) to develop its Cesano license in Italy through a joint scoping study.
EGP is part of the Enel Group dedicated to the development of energy generation from renewable sources and has geothermal energy plants in Italy, Chile, and the United States.
It’s a valuable partnership because EGP has already previously explored and drilled several wells in the Cesano area and gathered relevant data direct from local reservoirs.
The Cesano license area will become co-owned 50:50 by Vulcan and EGP and the companies will also explore future opportunities to cooperate on other geothermal lithium projects in Italy.
Diversifying the development portfolio
Vulcan Energy Resources (ASX:VUL) MD, Dr Francis Wedin, welcomed the opportunity to collaborate with Enel Green Power on the development of geothermal lithium.
“By growing and diversifying our project development portfolio, we ultimately aim to develop a globally significant Zero Carbon LithiumTM business focused on Europe, for Europe,” he says.
“As the largest producer of geothermal renewable energy in Italy, Enel Green Power is a leader in its field and has strong, positive relationships in the region.
“We look forward to working with Enel Green Power to make a lasting and sustainable contribution to the local community.”
German demo plant progressing
Vulcan has also received a positive result for its preliminary EIA application (UVP-V) to drill six wells for geothermal energy and lithium for its Taro license from the State Office for Geology and Mining in Rhineland-Palatinate in Germany.
Plus, community support is growing, with the Upper Rhine Council, a cross-border association of the regions of Baden-Württemberg, Rhineland-Palatinate, Alsace and the cantons of Northwestern Switzerland, resolving in favour of supporting deep geothermal projects in Ortenau.
Works at the company’s Sorption Demo Plant are continuing, and initial commissioning is planned to commence in late Q4.
This is behind schedule due to previously flagged, unprecedented global supply chain issues with sourcing certain pieces of equipment.
The commissioning of the company’s lithium hydroxide production Demo Plant “LiLy” is still on track to start in late Q1 2023.
This article was developed in collaboration with Vulcan Energy Resources Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
