Vulcan and Stellantis Sign Agreement to Explore Geothermal Energy to Supply Rüsselsheim Plant
Stellantis N.V. and Vulcan Energy Resources Limited have signed a binding term sheet for the first phase of a multi-phase project to build new geothermal projects that will help decarbonize Stellantis' Rüsselsheim manufacturing complex in Germany, which is home to both the DS4 and Opel Astra.
In the first part of the project, which will take place in the Upper Rhine Valley, the northernmost part of Vulcan's focus area, Vulcan will do a pre-feasibility study for the building of geothermal assets for Stellantis' facility. If it works, the next step will be to drill and do more research and development. Stellantis will aim to source funding for 50% of the project development, which is also supported by the local government.
Under Germany's Renewable Energy Act (EEG), Stellantis and Vulcan will try to make clean electricity and send it to the grid for internal and external use.
"This partnership with Vulcan shows how serious we are about promoting more clean energy solutions across our business," said Carlos Tavares, the CEO of Stellantis. “It is one of many actions we’ve taken to drive results, impact, and sustainability in alignment with our Dare Forward 2030 strategic plan.”
Stellantis wants to be the industry leader in fighting climate change by 2038, with a 50% reduction by 2030. Its deal with Vulcan Energy represents the company's first possible use of renewable geothermal energy to decarbonise and localise its energy supply at an industrial site.
“Vulcan’s core mission is decarbonisation, through renewable energy and carbon neutral, zero fossil fuels lithium supply,” said Vulcan Managing Director and CEO, Dr. Francis Wedin. “Vulcan is here to support Stellantis, our largest lithium customer and one of our major shareholders, to decarbonise its operations in Europe. "While we remain focused on our geothermal-lithium developments in the heart of the Upper Rhine Valley Brine Field, this project is a complementary opportunity to expand our development pipeline to some of the Upper Rhine Valley's outlying areas, with the help of industrial partners like Stellantis."
“I am happy about the partnership of Stellantis and Vulcan Energy announced today,” said Boris Rhein, Minister President of Hesse, Germany. “This is positive news for Hesse because it shows that in our state, climate protection and state-of-the-art industrial production through innovative ideas are perfectly compatible.”
The agreement with Stellantis also increases Vulcan’s decarbonising impact on the European electric vehicle industry, complementing the carbon avoidance from its Zero Carbon Lithium™ Project and creating shareholder value.