Stellantis N.V. and Vulcan Energy Resources Limited have signed a binding term sheet for the first phase of a multiphase project to develop new geothermal projects aimed at decarbonizing the energy mix of StellantisÆ Rnsselsheim industrial site in Germany, which is home to both the DS4 and Opel Astra. Based upon current assumptions, the project could provide a significant portion of the industrial siteÆs annual energy needs starting in 2025. The first phase of the project, located at the northernmost extent of VulcanÆs focus area in the Upper Rhine Valley, will include a pre-feasibility study for the construction of geothermal assets for StellantisÆ facility, carried out by Vulcan. If successful, the next phase will focus on drilling and more advanced studies and development. Stellantis will aim to source funding for 50% of the project development, 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 accordance with GermanyÆs Renewable Energy Act (EEG), while also producing heat to be transferred to StellantisÆ manufacturing site. Stellantis is committed to become the industry champion in climate change mitigation, becoming carbon net zero by 2038, with a 50% reduction by 2030. The agreement with Vulcan Energy marks StellantisÆ first potential use of renewable geothermal energy to decarbonize and localize its energy supply at an industrial site. The agreement with Stellantis also increases VulcanÆs decarbonizing impact on the European electric vehicle industry, complementing the carbon avoidance from its Zero Carbon LithiumÖ Project, and creating shareholder value.