Colwell’s Controlled Thermal Resources has signed a memorandum of understanding with Fuji Electric for the delivery of a 330 megawatt geothermal power station for the project. That was about a third of the project’s energy capacity.

Colwell has estimated that production of 150,000 tonnes of lithium hydroxide was also expected to be produced from the geothermal brine at the site “establishing Hell’s Kitchen as the largest and most sustainable lithium and power development in the world today”.

The $US1.4 billion in engineering, procurement and construction contracts consisted of a 55MW stage one power facility and delivering five additional 55MW power facilities.

“Utilising the geothermal brine and a portion of the renewable power generated from these facilities, CTR expects to produce 150,000 tonnes of lithium hydroxide annually to support the global demand for electric vehicles and energy storage systems,” Colwell said.

“Today marks the beginning of a clean energy evolution. Building these power facilities will support sustainable lithium production, satisfy our client’s increasing lithium requirements and encourage the battery supply chain industries to join us in California.”

CTR’s annual production would be enough for 2.5 million batteries and potentially save 3.78 billion litres of petrol and reduce vehicle emissions by 11.5 million tonnes a year.

At a contract signing ceremony Colwell got the backing of California’s Lieutenant Governor Eleni Kounalakis.

CT anticipates to be in production in 2024 with an initial target of 25,000 tonnes of lithium hydroxide.

Ultimately CTR plans 1100MW of renewable energy production and more than 300,000 tonnes of lithium products.