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Highlights:
- Vulcan Energy inks a binding collaboration agreement with Italian geothermal energy producer – Enel Green Power (EGP).
- Under the agreement, EGP and Vulcan have agreed to develop Vulcan’s Cesano license in Italy.
- Vulcan shares were up by more than 9% on the ASX today.
Australian mineral explorer, Vulcan Energy Resources Limited (ASX:VUL), on Friday (8 July 2022), shared that it has signed a binding collaboration agreement with Enel Green Power (EGP). EGP is an Italian geothermal energy producer.
On the back of this update, the shares of this AU$781.29 million market capitalisation company were heading north on the ASX. At 10:40 AM AEST, the shares were spotted 9.89% high from its previous close to trade at AU$6.00 per share. Including today’s gain, the shares surged by more than 6% in the last five trading sessions. The shares have dropped by over 40% over the previous six months. On a year-to-date basis, the share price has dipped by 44%. The shares have shot up by 2,622% in last five years.
Key highlights of the agreement with EGP
Vulcan and EGP have agreed to work on Vulcan’s Cesano license in Italy. Under the agreement, both companies have agreed to investigate the opportunities for corporations on geothermal lithium projects.
The parties would examine the capabilities of the Cesano license by following a step-wise approach. It would begin with the scoping study. Scoping study stands for forecasting the engineering requirements and estimating the cost of plant infrastructure, processing plant and mining operations.
Image source: © Surpasspro | Megapixl.com
Vulcan informed that EGP had explored and drilled numerous wells in the Cesano in the past. Also, EGP has collected data direct from local reservoirs.
As a part of the agreement, both parties would bring their geothermal and lithium extraction expertise to the table to investigate the geothermal lithium projects in Italy.
Vulcan said that the Cesano license area will be co-owned by both parties in a 50:50 ratio.
Cesano Permit covers an area of 11.5 square km, situated 20 km north-northwest of Rome. The Permit hosts areas drilled by Enel Group. Reportedly, these wells yielded hot geothermal brine, which has high lithium values.
Management’s commentary
On the development, Francis Wedin, managing director, Vulcan, commented that the company is focusing on increasing the supply of its sustainable lithium product to keep up with the increasing customer demand. Wedin added that by diversifying and growing its project development portfolio, the company’s ultimate aim is to ‘develop a globally significant Zero carbon Lithium business focused on Europe or for Europe.’
About EGP
EGP is part of the Italian multinational manufacturer of gas and electricity - Enel Group. Enel Group adopts new sustainability-oriented technologies to distribute power among its customers.
Vulcan informed that EGP is a global leader in geothermal energy. The company generates power from renewable resources and provides innovative sustainable business solutions.
