Vulcan Signs Major Geothermal Power Contract for Zero Carbon Lithium Project

Vulcan Energy (ASX: VUL) has signed a landmark agreement with a consortium of engineering heavyweights Turboden and ROM Technik to build the geothermal power plant at its Phase One Lionheart Project in Germany — a critical step toward delivering Europe's first fully integrated lithium and renewable energy operation.

The contract is valued at approximately €110 million and covers the engineering, procurement, and construction of a 30 megawatt geothermal power plant near Landau, Germany. The plant will use Organic Rankine Cycle technology to generate baseload renewable energy from geothermal brine — the same source that supplies lithium for Vulcan's downstream processing.

This power plant forms the backbone of the Lionheart Project, which is targeting annual production of 24,000 tonnes of lithium hydroxide and 275 gigawatt hours of renewable energy. That is enough lithium to power batteries for around half a million electric vehicles per year.

The deal is structured as a fixed price turnkey contract, with material payments contingent on Vulcan finalising its broader financing package later this year. It follows recent progress on multiple fronts, including the approval by the City of Landau Council for land acquisition and the awarding of building permits for both the geothermal plant and an electrical substation.

Managing Director and Chief Executive Officer Cris Moreno described the contract as a major milestone in Vulcan’s journey to decarbonise battery production in Europe.

“Securing the services of both Turboden and ROM Technik will underpin the construction of the geothermal power plant,” Moreno said. “We are fully confident in their ability to execute, having delivered similar projects both in Germany and internationally.”

Turboden, a Mitsubishi Heavy Industries company, is a global leader in Organic Rankine Cycle systems, which are ideal for harnessing geothermal and waste heat to produce electricity. ROM Technik specialises in technical building equipment and will oversee construction coordination.

The geothermal power plant will work alongside Vulcan’s Geothermal and Lithium Extraction Plant (G LEP), where both lithium and renewable energy are co-produced from subsurface brine. This integrated approach is central to Vulcan’s goal of delivering a low cost, local and sustainable lithium supply for Europe’s electric vehicle sector.

The contract includes stringent performance guarantees, with penalties for delays or underperformance, and is backed by standard financial securities and indemnities.

This latest agreement follows Vulcan’s recent partnership with NORAM Electrolysis Systems for lithium electrolysis technology, further strengthening the project's supply chain. With the financing package targeted for completion in the second half of 2025, construction of the power plant is expected to commence shortly after.

Vulcan’s Lionheart Project is located in the Upper Rhine Valley and holds the largest lithium resource in Europe. As the company progresses toward production, it continues to cement its status as a pioneer in clean energy and battery materials for the continent’s fast growing electric vehicle ecosystem.