The Vulcan Energy Resources Ltd (ASX: VUL) share price is taking off on news the company has entered an agreement with an Italian renewable energy giant.
Vulcan Energy and Enel Green Power (EGP) have agreed to work together to explore the development of the Cesano licence.
At the time of writing, the Vulcan Energy share price is $5.89, 7.88% higher than its previous close.
Let's take a closer look at today's news from the ASX lithium share.
Vulcan Energy share price takes off on Friday
The Vulcan Energy share price is launching higher after the company announced EGP is onboard to explore the development of the Cesano licence. The companies may also cooperate on other Italian geothermal lithium projects.
Under the agreement, EGP will take a 50% hold in the Cesano licence, located near Rome.
The project houses a geothermal well with high average lithium-in-brine grades. It's considered to have the potential for sustainable lithium battery chemicals development.
EGP's parent company has already engaged in exploration in the area, drilling numerous wells and gathering data from local reservoirs.
The companies will take a step-by-step approach to assess the project's potential, starting with a scoping study.
Vulcan managing director Dr Francis Wedin commented on today's news, saying:
As the largest producer of geothermal renewable energy in Italy, [EGP] is a leader in its field and has strong, positive relationships in the region. We look forward to working with [EGP] to make a lasting and sustainable contribution to the local community.
What else did the company announce?
On top of its fresh deal, Vulcan Energy released good news about its flagship Zero Carbon Lithium Project.
A preliminary application to drill six wells for geothermal energy and lithium has had a win, with authorities determining its environmental impact can't be assessed as significant. That means a full environmental impact assessment isn't needed.
Additionally, the Upper Rhine Council has shown support for geothermal energy production.
The company also noted that the initial commissioning of the Sorption Demo Plant is behind schedule. It's set to commence late in the fourth quarter. Commissioning of 'LiLy', Vulcan Energy's lithium hydroxide production demo plant is on track to start commissioning later this quarter.
And finally, the company is working on phase one and two definitive and pre-feasibility studies for its renewable energy and lithium production. It's aiming to increase production in both phases relative to previous pre-feasibility study assumptions due to higher customer demand. Though, it noted the studies' completion may be delayed by local approval processes.
Meanwhile, its gathering data for a planned resource update in the second half of 2022.
