ASX-listed Vulcan Energy Resources has signed a binding term sheet with energy technology company SLB to enable an increase in current brine production from the Phase 1 development of its Vulcan Zero Carbon lithium project, in Germany.

As part of the agreement, SLB will provide technology services for $3.6-million in-kind to support the optimisation of workflows to maximise performance, with the company’s expertise covering well construction, evaluation, production and optimisation of the Phase 1 commercial project for the integrated geothermal renewable energy and lithium project.

The €1.49-billion Phase One Zero Carbon lithium project is currently targeting 240 000 t/y of lithium hydroxide monohydrate (LHM) production, with more than 300 GWh/y of renewable power and more than 250 GWh/y of renewable heat production.

Vulcan will grant SLB the full well scope for Phase 1 on a ‘right of first refusal’ basis for all eligible SLB services, with the technology company to execute drilling services for a minimum of 15 production and re-injection wells for the production of renewable heat and lithium-bearing brine, which will increase Vulcan’s brine production from its current operations.

“As widely reported, while 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 MD 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.”