Vulcan Energy Resources has secured €100m ($106m) from the German Government to develop a renewable geothermal heat plant in Landau, Germany.
The funding will be offered by the Federal Ministry of Economics and Climate Protection (BMWK) and the European Recovery and Resilience Facility, with €22m to be paid in 2026 and the remaining €78m in 2027.
The Vulcan HEAT4LANDAU project is a significant part of the company's Phase One Lionheart Project.
This initiative is designed to produce 24,000mtpa of lithium hydroxide, contributing to Europe's green lithium supply chain.
The funding is set to bolster the transition to sustainable and renewable district heating in Landau, with operations commencing in 2026.
The financing process for Vulcan's Phase One Lionheart Project is progressing, under the guidance of BNP Paribas.
A consortium, including the European Investment Bank, is involved in the debt structuring.
The latest government funding falls under the Guideline for Federal Funding for Efficient Heating Networks.
It aims to implement transformative measures for decarbonising district heating networks in Landau, Rheinland-Palatinate.
These efforts come under the German Recovery and Resilience Plan funding programme, to which Vulcan has applied.
Vulcan managing director and CEO Cris Moreno said: “Securing this funding is a major milestone for Vulcan in fulfilling our commitment to decarbonising Germany’s energy landscape.
“By delivering sustainable, renewable geothermal heat to Landau and surrounding communities, we are taking a significant step towards a 100% carbon-neutral district heating network.
“The HEAT4LANDAU Project not only enhances energy security by providing a stable and local source of renewable heating but also showcases the innovative potential of geothermal energy in Europe’s green transition.”
In June this year, Vulcan secured €40m through a private placement to finance the construction of its Phase One Integrated Zero Carbon Lithium Project in Germany.
The placement saw Vulcan issuing ten million shares to CIMIC Group for €25m, five million shares to Hancock Prospecting for €12.5m and one million shares to Victor Smorgon Group for €2.5m.
