The Vulcan Energy Resources Ltd (ASX: VUL) share price is on the move after the company announced it has entered a binding agreement to acquire 100% of geothermal surface consultancy business, Global Engineering and Consulting Gmbh (gec-co). At the time of writing, Vulcan shares have jumped 6.82% higher to $8.14 apiece.
The acquisition will double the size of Vulcan’s technical team to drive the development of its Zero Carbon Lithium project.
According to today’s release, gec-co is a world-leading planning and consultancy company for deep geothermal projects. It focuses on projects at surface including power plants, heat stations, drill pads and permitting. The company has a highly credentialed scientific team of 25 with more than 300 years of combined engineering knowledge.
In similar news that also sent the Vulcan share price soaring recently, the company announced in February it had acquired a sub-surface development company, GeoThermal Engineering. Vulcan has today advised that its latest acquisition now positions the company with an “unparalleled surface and sub-surface geothermal development team” to drive its flagship Zero Carbon Lithium strategy.
Vulcan managing director Dr Francis Wedin commented on the gec-co acquisition, saying:
By acquiring to grow our team, we are accelerating the development of our globally unique project. Our geothermal development team is well complemented with the acquisition of surface engineering consultancy gec-co, following the recent acquisition of sub-surface development consultancy GeoT. The gec-co team is immensely experienced… and also brings in public relations, administrative and logistical support to the rapidly growing Zero Carbon Lithium™ project.
…the Vulcan group is now very well positioned to execute on our strategy: to decarbonise heat and power in Europe with geothermal development in the Upper Rhine Valley, and in doing so to co-produce a world-first lithium hydroxide with net zero carbon footprint for the European electric vehicle market.
Vulcan share price snapshot
After briefly running as high as $14.20 on 19 January this year, the Vulcan share price has been mostly trading between the $5 and $7 marks. Today’s boost, however, has seen Vulcan shares push past $8 for the first time since early February. Year to date, the company’s shares are up by almost 200% and have also rallied by around 4,000% over the past year.