Vulcan acquires GeoT, world leading geothermal consulting team
Vulcan Energy Resources Limited (ASX:VUL) has today outlined the binding agreement signed to acquire 100% of geothermal sub-surface consultancy company GeoThermal Engineering GmbH (GeoT).
GeoT has a highly credentialed, world-leading scientific team with over a century of combined expertise in sub-surface development of geothermal projects, from exploration to production drilling.
The company was founded in 2005, and is headquartered in the city of Karlsruhe, withing the Upper Rhine Valley of Germany.
Since its inception, the company has been involved in development deep geothermal projects in Germany and worldwide, and has been working closely with the Vulcan team since the beginning of Vulcan’s Zero Carbon Lithium® Project.
Acquisition shall build Vulcan’s development team
The acquisition is part of Vulcan’s plans to accelerate its Zero Carbon Lithium® Project in Germany, by rapidly growing its development team.
Vulcan Managing Director, Dr. Francis Wedin, commented: “By acquiring GeoT, we are welcoming decades of experience of German deep geothermal sub-surface project development into the Vulcan team.
“GeoT has exceptional expertise in the geology and geochemistry of the Upper Rhine Valley geothermal brine.
“Our motivations are fully aligned: to decarbonise heat and power in Europe with geothermal development in the Upper Rhine Valley, and in doing so to co-produce Zero Carbon Lithium® for the European electric vehicle market.
“We expect our larger, bolstered development team to accelerate the development of our globally unique project.”
Acquisition adds to list of strong recent developments
The GeoT acquisition is but one of a sizeable list of Vulcan’s promising developments announced in recent months, including:
- $120 million placement endorses Zero Carbon Lithium®.
- COO appointment and Vulcan joins lithium ISO committee.
- Positive Pre-Feasibility Study.
- German legislation embraces geothermal energy.
- European Commission Regulation on batteries & CO2 footprint.
- Appointment of lithium, chemistry & automotive experts to the Executive Team.
Terms of the Acquisition
Vulcan has entered into a binding Term Sheet with the sole shareholder of Geothermal Engineering GmbH (GeoT) to purchase 100% of the shares in GeoT.
GeoT is owned by Vulcan Executive Director, Dr. Horst Kreuter.
Dr. Kreuter has been excluded from the negotiation process on the Company side, and the transaction has been negotiated at arm’s length.
Completion of the acquisition is be subject to completion of due diligence to Vulcan’s sole discretion and satisfaction.
Vulcan is aiming to become the world’s first Zero Carbon Lithium® producer, by producing a battery-quality lithium hydroxide chemical product with net zero carbon footprint.
Located in the Upper Rhine Valley of Germany at the heart of the EU Li-ion battery industry, Vulcan possesses a large, lithium rich geothermal brine project, which is Europe’s largest JORC compliant lithium resource.
Vulcan will use its unique Zero Carbon Lithium® process to produce both renewable geothermal energy, and lithium hydroxide, from the same deep brine source.
In doing so, Vulcan will address lithium’s EU market requirements by reducing the high carbon and water footprint of production, and total reliance on imports, mostly from China.
Vulcan aims to supply the lithium-ion battery and electric vehicle market in Europe, which is the fastest growing in the world. Vulcan has a resource which can satisfy Europe’s needs for the electric vehicle transition, from a zero-carbon source, for many years to come.