VUL Vulcan Energy Resources Limited

By Christian Moess Laursen

Stellantis NV said Tuesday that it signed an agreement with Vulcan Energy Resources Ltd. to decarbonize Stellantis's Ruesselsheim site, which manufactures its DS4 and Opel Astra.

The global auto maker, which owns Jeep, Ram Trucks and other well-known car brands, said the project will explore the possible use of geothermal energy at the manufacturing site in western Germany.

Stellantis didn't disclose financial details.

In its first phase, Vulcan, an Australia-based decarbonizing company, will examine whether it is feasible for Stellantis to construct the geothermal assets, and if successful, the next phase will focus on drilling and more advanced studies and development, Stellantis said.

The geothermal assets will decarbonize the energy mix of the site and could provide a significant portion of the location's annual energy needs starting in 2025, the company said.

Stellantis will look to source funding for 50% of the project, which is also supported by the local government, the company said.

The project is part of Stellantis's plans to halve its carbon emissions by 2030, before becoming carbon-neutral in 2038, it said.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

January 17, 2023 06:51 ET (11:51 GMT)

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