Vulcan Energy releases DFS results at its Zero Carbon Lithium project
Published by Joe Toft,
Editorial Assistant
Global Mining Review,
Highlights:
Aiming to be the first integrated, renewable heat and power, lithium extraction and lithium hydroxide refining project, to supply the battery electric vehicle industry from Europe, for Europe.
- Targeting 24 000 tpy lithium hydroxide monohydrate (LHM) p.a. production from EU, for EU.
- Targeting >300 GWh/a renewable power, >250 GWh/a renewable heat production p.a.
- >250% increase in estimated NPV8: €3.9 billion pre-tax, €2.6 billion post-tax.
- 34% estimated IRR pre-tax, 26% IRR post-tax.
- Targeted >€700 million pa estimated revenues. Targeted EBITDA margin of 84%.
- €1496 million estimated CAPEX, increase broadly in line with larger project and inflation.
- Low estimated OPEX of €4359/t LHM.
- Targeted 3.5-year payback. Target start of production end of 2025.
- Net zero per tonne estimated LHM carbon footprint: a world first in lithium industry.
- Zero Scope 1 fossil fuels. Net water consumption very low.
- Increase in resources and reserves relative to integrated Phase One PFS: largest lithium resource in EU.
Vulcan Managing Director and CEO, Dr. Francis Wedin, commented:
“I would like to thank our whole Vulcan team and our consultants for the monumental effort in getting our Phase One, Zero Carbon Lithium™ project DFS completed successfully. Our project consists of commercially well understood methods or processes with commercial analogues from other industries, but this is the first time these processes from the lithium chemicals and renewable energy industries have been combined to produce a unique, net zero carbon, zero scope 1 fossil fuels project development. It is an exciting project to work on, combining multidisciplinary, international scientific, engineering and commercial teams, passionately driven by the desire to provide sustainable, decarbonised lithium and renewable energy supply from Europe, for Europe.
“The Phase One DFS, backed up by technical data from our operating commercial geothermal wells and plant, and our operating lithium extraction pilot plants, shows compelling financial results, as well as world leading target environmental metrics. Simply put, we are showing that with the right engineering, choosing a sustainable lithium production process can be a more profitable route than legacy methods.
“The work doesn’t stop here, it starts here, as we target start of production by end of 2025 and ramp-up thereafter. This is a tight timeframe, and we recognise the significant challenge ahead of us as a growing company. To this end, we are rapidly transforming towards being a project execution and operations company. We have an exciting time ahead of us, with start-up of demonstration plants to train our operations team, start of development drilling for new production wells, and, of course, project financing. It is shaping up to be a very exciting year for Vulcan, and the Zero Carbon Lithium project, and I look forward to continuing to share the journey with our team and our stakeholders.”
Vulcan Deputy CEO, Cris Moreno, commented:
“What a fantastic achievement by the Vulcan team to complete the DFS.”
“We are in a race to get to net zero and Vulcan is playing its part in disrupting and decarbonising two traditionally carbon-intensive industries, in energy and battery raw materials. Our Zero Carbon Lithium project in the Upper Rhine Valley Brine Field marries geothermal energy and lithium production in an innovative and circular manner, allowing us to be fossil fuel-free in our process and ensure we deliver net carbon neutral, domestically sourced energy and lithium from Europe, for Europe.”
“Our Vulcan team has done a terrific job to deliver such a comprehensive and positive DFS result for our Phase One project. Vulcan Energy is transitioning quickly from a development company to an integrated project execution and production company and aims to continue to build on its German-centric delivery model, with on the ground leadership and close collaboration with key technology and execution partners to help deliver its Phase One project safely, with quality, on time and within budget."
Read the article online at: https://www.globalminingreview.com/mining/14022023/vulcan-energy-releases-dfs-results-at-its-zero-carbon-lithium-project/
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