Vulcan shows its carbon neutral hand

PERTH (miningweekly.com) – A prefeasibility study (PFS) into ASX-listed Vulcan Energy’s Zero Carbon lithium project, in Germany, has demonstrated the potential to develop a cutting edge combined renewable energy and lithium hydroxide project with a net zero carbon footprint.Vulcan is proposing to draw on naturally occurring geothermal energy to power the lithium extraction process, and to create a renewable energy by-product, with the operation using no fossil fuels and requiring little water, while also having a small footprint.Phase 1 of the project would produce some 15 000 t/y of lithium hydroxide, while generating 22 MW of electricity, while the Phase 2 operation would produce 25 000 t/y of lithium hydroxide, along with 51 MW of electricity.The PFS has estimated a starting capital cost of €226-million for geothermal wells and plant, and €474-million for direct lithium extraction plans and a central lithium plant.For the two-phase operation, the PFS has estimated a total capital cost of €1.14-billion, while a full, no phase project, would require a total capital investment of €1.74-billion.The full, no phase project is expected to have a post-tax net present value (NPV) of €2.25-billion and a post-tax internal rate of return of 21%, while Phase 1 of the phased project would have an NPV of €700-million, and Phase 2 would have an NPV of €1.4-billion.