Name of the Project
Zero Carbon lithium project.

Location
Höchst Chemical Park, outside of Frankfurt, in Germany.

Project Owner/s
Vulcan Energy.

Project Description
The project has a maiden probable ore reserve of 1.12-million lithium carbonate equivalent at 181 mg/ℓ lithium across the project’s Ortenau and Taro licences.

The prefeasibility study (PFS) proposes to draw on naturally occurring geothermal energy to power the lithium extraction process and create a renewable-energy by-product, with the operation not using any fossil fuels, requiring little water and having a small footprint.

The project includes a geothermal power plant for the production of renewable-sourced electricity at each brine extraction site. Co-located on the same sites are direct lithium extraction (DLE) plants for the extraction of lithium. The lithium chloride solution from the DLE plants will then be sent to a central lithium plant, where the solution is purified and converted into produce battery-grade lithium hydroxide monohydrate.

Multiple DLE and conversion plant capacity scenarios have been investigated as part of the PFS.

The full project will produce 15 000 t/y of lithium hydroxide, along with 73 MW of electricity.

Phase 1 considers the production of geothermal energy and lithium chloride through two plants, with lithium hydroxide produced at a central lithium plant. Phase 2 considers the production of geothermal energy and lithium chloride through three plants, with lithium hydroxide produced at a central lithium plant. 

Phase 1 (Taro) will produce about 15 000 t/y of lithium hydroxide while generating 22 MW of electricity, while the Phase 2 (Ortenau) operation will produce 25 000 t/y of lithium hydroxide, along with 51 MW of electricity.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The combined renewable-energy lithium project, with no phasing, has a positive after-tax net present value (NPV) of €2.25-billion and an internal rate of return of 21%, with a payback of five years.

The proposed phased option shows an NPV of €700-million in Phase 1 (Taro) and an NPV of €1.4-billion in Phase 2 (Ortenau), with a payback of five and six years respectively.

Lithium, as a separate entity from energy, shows a post-tax IRR of 26%.

Capital Expenditure 
The full project, with no phasing, has a capital expenditure (capex) of €1.74-billion.

Phase 1 has capex of €700-million and Phase 2 €1.14-billion. 

Planned Start/End Date 
The proposed full project, with no phasing, will start in 2024.

Phase 1 and Phase 2 are proposed to start in 2024 and 2025 respectively.

Latest Developments
Vulcan Energy has signed a binding lithium hydroxide offtake agreement with cathode materials producer Umicore at its Zero Carbon lithium project.

The agreement spans an initial five-year term, starting with commercial delivery in 2025. Umicore will buy a minimum of 28 000 t and a maximum of 42 000 t of battery-grade lithium hydroxide over the duration of the agreement, with the pricing to be based on market prices on a take-or-pay basis.

Vulcan is targeting Phase 1 commercial production for 2024.

Key Contracts, Suppliers and Consultants
gec-c (geothermal plant design); Hatch (direct lithium extraction and lithium processing plant design, engineering and cost estimates); Geo-T (engineering studies and cost estimates for the geothermal plant, as well as the subsurface well design and production study); GLJ (review and sign-off on the maiden probable Joint Ore Reserves Committee ore reserves); APEX Geoscience (resource modelling and estimation for the Upper Rhine Valley project lithium-brine indicated resources used in the PFS); IBZ Salzchemie, among other providers (laboratory testwork); and Optiro (financial modelling).

Contact Details for Project Information
Vulcan Energy, tel +61 8 6189 8767 or email info@v-er.com.