Vulcan Energy (ASX:VUL) has agreed to acquire a geothermal renewable energy power plant from energy supplier Pfalzwerke AG in Germany.
Vulcan will purchase 100 per cent of shares in Pfalzwerke AG, which owns and operates the plant for around $49.8 million. The plant is located in the Upper Rhine Valley at Insheim, Germany and currently has the technical ability to produce a maximum of 4.8MW renewable power, equivalent to around 8,000 households, according to the company.
A new Germany subsidiary of Vulcan, based in Karlsruhe, will be the owner and operator of the Insheim Plant. The deal will also be funded from a portion of the recent $200 million capital raise.
Vulcan will formally take over the plant from January 1 next year and retain all existing local employees as part of the transition.
“The acquisition of the Insheim Plant is consistent with Vulcan’s strategy to acquire and upgrade existing brownfield renewable energy and brine infrastructure and to de-risk and grow our Zero Carbon Lithium Project,” said managing director Dr Francis Wedin.
Shares in Vulcan Energy (ASX:VUL) are trading 5.4 per cent higher at $11.67.