MILAN (Reuters) - Stellantis and Vulcan Energy Resources have signed a binding agreement for the first part of a multi-phase plan to develop new geothermal projects with the intent of decarbonizing the energy mix at the industrial site in Rüsselsheim, Germany.

The DS4 and Opel Astra cars are produced at the Rüsselsheim site.

The first phase of the project, which will take place at the northern end of the Vulcan area in the Upper Rhine Valley, will include a pre-feasibility study performed by Vulcan regarding the establishment of geothermal facilities for the Stellantis site.

Stellantis will aim to raise financing for 50 percent of the development of the project, which is also supported by the local government.

The two companies will aim to produce clean electricity and supply it to the grid for both internal and external consumption in compliance with the German Renewable Energy Act, while producing heat to be transferred to the Stellantis production site.

(Gianluca Semeraro, editing Stefano Bernabei)