(Alliance News) - Stellantis NV and Vulcan Energy Resources Limited announced Tuesday that they have signed a binding agreement for the first part of a multi-phase plan to develop new geothermal projects with the intent of decarbonizing the energy mix at the Stellantis industrial site in Rüsselsheim, Germany, where the DS4 and Opel Astra cars are produced.

Under current assumptions, the project could cover a significant portion of the industrial site's annual energy needs starting in 2025.

The first phase of the project, which will take place at the northern end of the Vulcan area in the Upper Rhine Valley, will include a pre-feasibility study carried out by Vulcan regarding the establishment of geothermal facilities for the Stellantis site. If successful, the next phase will focus on drilling operations and more advanced study and development activities. Stellantis will aim to raise funding for 50 percent of the development of the project, which is also supported by the local government.

Stellantis and Vulcan will aim to produce clean electricity and supply it to the grid for both internal and external consumption in compliance with the German Renewable Energy Act, while also producing heat to be transferred to Stellantis' production site.

"This partnership with Vulcan reinforces our commitment to promote clean energy solutions throughout our company," said Carlos Tavares, CEO of Stellantis. "It represents one of the many initiatives we have undertaken to achieve results, impact and sustainability in line with our Dare Forward 2030 strategic plan.

"Stellantis is committed to becoming the industry benchmark in combating climate change, with the goal of achieving zero emissions by 2038, with a 50 percent reduction by 2030. The agreement with Vulcan Energy marks the first potential use of renewable geothermal energy for Stellantis directed at decarbonizing and localizing energy supply at an industrial site."

Stellantis' stock is down 1.3 percent at EUR14.13 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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