The Vulcan Energy share price rose higher this morning upon their new announcement of an off-take deal.
Upon morning trading, the up and coming lithium prospect were up over 3% to $10.50. Despite this the share price ended lower due to an overall pullback in the mining sector as a whole. Investors were initially pushing the price higher due to the offtake agreement announcement prior to open.
This offtake agreement was not for lithium, however, but instead for renewable heat from its geothermal wells. As per the announcement, Vulcan and MVV Energie AG agreed upon a 20-year binding agreement for at least 240 gigawatt hours per year of renewable heat.
MVV is the largest municipal energy supplier in Germany and generates an annual revenue of 4.1 billion euros. This deal begins in 2025 for the supply of a minimum of 240,000MWh per year to a maximum of 350,000MWh per year to households in Mannheim, outside of Frankfurt, Germany.
Vulcan stated that the heat will come from the company’s planned geothermal wells in the area surrounding the City of Mannheim. Vulcan is developing its Mannheim licence as part of a planned larger Phase 2 of the Zero Carbon Lithium Project.
Francis Wedin, the Managing Director of Vulcan stated:
“We believe that Geothermal renewable energy on a mass scale, combined with lithium extraction from the same deep geothermal source, can and will play an important part in achieving Europe and Germany’s energy security and independence. We are proud to partner with MVV, a leader in German energy supply, dedicated to making a lasting and sustainable contribution to the local community through the provision of renewable energy and heat.”