Vulcan and Stellantis to develop geothermal renewable energy supply in France

Stellantis N.V. and Vulcan Energy Resources have signed a binding term sheet for the first phase of a multiphase project, to develop new geothermal projects aimed at decarbonising the energy mix of Stellantis’ Mulhouse industrial site in France.
Vulcan and Stellantis to develop geothermal renewable energy supply in France Vulcan and Stellantis to develop geothermal renewable energy supply in France Vulcan and Stellantis to develop geothermal renewable energy supply in France Vulcan and Stellantis to develop geothermal renewable energy supply in France Vulcan and Stellantis to develop geothermal renewable energy supply in France

Vulcan is going to work with Stellantis to develop geothermal renewable energy to supply the automotive manufacturers Mulhouse plant in France

Stellantis, which is one of the world's leading automakers produces the DS 7, Peugeot 308 and 308 SW, 508 and 508 SW and the new 408 models at the Mulhouse facility. Based upon current assumptions, the planned renewable energy project could provide a significant portion of the industrial site's annual energy needs starting in 2026.

The first phase of the project, located at the southernmost extent of Vulcan's focus area in the Upper Rhine Valley, will include a pre-feasibility study (PFS) for the construction of geothermal renewable energy assets for Stellantis' facility, carried out by Vulcan, which will also assess potential for lithium production. If successful, the next phase will focus on more advanced studies and development. Stellantis will aim to source funding for 50% of the project development, and the parties will seek public funding for the project. Subject to a successful PFS, Stellantis and Vulcan aim to develop the project jointly on a 50:50 basis.

Stellantis and Vulcan will aim to jointly produce clean, renewable energy for internal consumption at Stellantis' manufacturing site.

Demonstrates our commitment to increase the use of decarbonised energy solutions across our facilities

In November 2022, Vulcan announced that it had started a number of initiatives to expand its geothermal renewable energy and Zero Carbon Lithium business into France and specifically Alsace, which accounts for roughly one-third of the Upper Rhine Graben. Vulcan has applied over the Mulhouse area for an exclusive lithium and geothermal license to secure another 480sq.km of development area within the Upper Rhine Graben Valley Brine Field. According to the term sheet, Vulcan's team will perform a lithium mineral resource assessment according to the JORC Code.

Vulcan's Zero Carbon Lithium project is aligned with the creation of the French Mineral Resources Observatory, which aims to analyse the French critical raw materials resources and provide recommendations for public investment that will be supported by the recently announced new €2 billion French Critical Raw Materials Fund.

"We are proud to announce another step in our partnership with Vulcan, which demonstrates our commitment to increase the use of decarbonised energy solutions across our facilities," Arnaud Deboeuf, Stellantis chief manufacturing officer, said. "Geothermal is one of many solutions we explore to achieve our sustainability goals in alignment with our Dare Forward 2030 strategic plan."

Decarbonisation 

Stellantis embraces a holistic approach to decarbonisation and is on track to become a carbon net zero corporation, all scopes included, by 2038, with single-digit percentage compensation of remaining emissions. The agreement with Vulcan Energy marks Stellantis' second potential use of renewable geothermal energy to decarbonise and localize its energy supply at an industrial site.

"Vulcan's core mission is decarbonisation, through renewable energy and carbon neutral lithium supply," Vulcan managing director and CEO, Francis Wedin, said.

"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 the execution of our integrated Phase One commercial lithium and renewable energy project, in the centre of the Upper Rhine Valley Brine Field, this project is a complementary opportunity to expand our future development pipeline into the French region of the Upper Rhine Valley, supported by industrial partners like Stellantis."

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.

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