Vulcan Energy Resources Ltd (VULNF)

[TradingCharts]

Vulcan becomes renewable energy producer
with geothermal plant acquisition
1. Insheim renewable energy plant acquisition. 2. Brine offtake
agreement with Landau plant. 3. Incorporation of plans into revised DFS
1. Insheim renewable energy plant acquisition
• Vulcan Energy Resources Ltd. (Vulcan, the Company, ASX: VUL),
has agreed to acquire an operational geothermal renewable
energy power plant in the Upper Rhine Valley at Insheim,
Germany (the "Insheim Plant"), through the acquisition of 100% of
the shares in the entity which owns and operates the plant. A new
Germany subsidiary of Vulcan, based in Karlsruhe, will be the
owner and operator of the Insheim Plant.
• Purchased for approximately €31.5 million, utilising a portion of
proceeds from the recent A$200 million capital raise, the
acquisition of the Insheim Plant establishes Vulcan as an
operational renewable energy business.
• Owned by regional energy supplier Pfalzwerke AG, the plant
currently has the technical ability to produce a maximum of
4.8MW renewable power, equivalent to approximately 8,000
households, with an additional ability to produce heating1
. The
plant is producing 2.9 MW of electricity on average.
• It is anticipated that the Insheim Plant will be a source of revenue
for Vulcan, having reported sales of €5.8 million and an EBITDA
of €2.9 million for the financial year ending 31 December 2020.
The plant presently capitalises on the Feed-in Tariff for
geothermal power.
• The acquisition also includes 100% ownership of the Insheim
production licence surrounding the Insheim Plant. Following an
MoU signed in November 2019, Vulcan had already completed the
Maiden Indicated Lithium-Brine Mineral Resource Estimation at
the Insheim license in January 2020, reporting an Indicated
Mineral Resource of 722,000 t of contained Lithium Carbonate
Equivalent (LCE), with a lithium brine grade of 181 mg/l Li2
.
• The Insheim Plant currently pumps lithium-rich brine to the
surface for geothermal energy generation before the brine is
reinjected into the reservoir.
• Vulcan will formally take over the plant from 1 January 2022 and
will retain all existing local employees as part of the transition.
Vulcan also plans to invest in the expansion and modernisation of
the power plant.
https://www.thinkgeoenergy.com/webinar-virtual

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