Vulcan Energy Resources Limited (ASX: VUL) and petroleum drilling specialist SLB have signed a Binding Term Sheet (BTS) for services related to the Phase One development of further production and re-injection wells, to increase current geothermal-lithium brine production from Vulcan’s Zero Carbon Lithium Project.
• SLB (formerly Schlumberger), a global energy technology company and a leader in the geothermal industry, will provide services covering but not limited to well construction, evaluation, production, and optimization for Phase One of Vulcan’s commercial project execution for integrated geothermal renewable energy and lithium production.
• As part of the agreement, SLB will provide technology services for US$3.6M in-kind to support the optimization of workflows to maximize performance.
• Vulcan will grant SLB the full well scope for Phase One on a “Right of First Refusal” (ROFR) basis for all eligible SLB Services.
• SLB will execute drilling services for a minimum of 15 production and re-injection wells, for production of renewable heat and lithium-bearing brine, to increase Vulcan’s brine production from its current operations.
• The Parties will further formalize their commercial relationship through a Master Supply Agreement.
“As widely reported, whilst the mining sector is investing in hard-rock lithium production, the oil and gas sector has unique expertise which can be leveraged to develop renewably heated lithium brine assets, which can produce lithium sustainably with a lower carbon footprint,” said Vulcan Managing Director and CEO, Dr Francis Wedin.
“The Zero Carbon Lithium Project, which is gearing up to provide sustainable lithium to the European electric vehicle industry and renewable energy to local communities, is well positioned to benefit from partnering with established companies with long-standing expertise in the energy sector like SLB, and we look forward to working together as we ramp up our execution phase.”
SLB’s Managing Director – Europe, Rob Fox, said the transition to clean energy solutions will require innovation and collaboration on an unprecedented scale.
“ Our decades of subsurface knowledge, drilling expertise and cutting-edge technologies will be seamlessly integrated in this project to deliver increased brine production, aiding Vulcan in its objective of providing sustainable, decarbonized lithium.
“Through its GeothermEx consulting and services business, SLB is in a unique position to serve the rapidly growing geothermal industry. SLB has worked in hundreds of geothermal fields in more than 50 countries and has participated in 70% of all operating geothermal projects worldwide, meaning SLB is well equipped for geothermal projects execution, having worked in the subsurface since 1922.”
For further information please visit: https://v-er.eu/
