Lithium Valley: $1.4 billion deal is next step toward power plants at Salton Sea

Janet Wilson, Palm Springs Desert Sun
·2 min read
20

Two companies have inked a $1.4 billion agreement to build up to six geothermal power facilities around the Salton Sea in Imperial County.

Under the deal signed Wednesday, Controlled Thermal Resources will hire Fuji Electric Corp. of America to finish construction of its first plant. Fuji also will provide parts for — and possibly build — five more. Combined, they could produce 330 megawatts of steam power and enough lithium for millions of electric-car batteries.

CTR declined to disclose whether it has obtained funding for all or part of the ambitious, five-year construction package at its Hell's Kitchen project site. CTR is one of three companies seeking backing to perfect lithium extraction technology and ramp up geothermal and lithium production in so-called Lithium Valley.

Among the highlights of the memorandum of understanding CTR signed Wednesday in Tokyo with Fuji Electric Corp. of America:

  • The facilities would pump boiling brine from deep beneath the Salton Sea and convert it into up to 330 megawatts of steam power annually.

  • CTR expects to produce an estimated 150,000 metric tons of lithium hydroxide, using part of the power to convert raw lithium salts in the geothermal brine to a marketable product widely used in electric vehicles, battery storage and cell phones.

  • The commercial-scale lithium could be used in around 2.5 million EV batteries for standard-sized passenger cars, saving up to 1 billion gallons of gasoline and reducing vehicle tailpipe emissions by 11.5 million metric tons yearly, CTR says.

  • CTR anticipates completion of its Stage 1 geothermal facility and the commencement of 25,000 metric tons of lithium hydroxide production in late 2024.

"Today marks the beginning of a clean energy evolution. Building these power facilities will support sustainable lithium production, satisfy our clients' increasing lithium requirements, and encourage the battery supply chain industries to join us in California,” CTR's Chief Executive Officer Rod Colwell said in a prepared statement.

Fuji Electric will handle equipment, procurement and construction for the the new plants. Since its first geothermal turbine delivery in Japan in 1960, Fuji Electric has expanded to five continents. The Hell's Kitchen projects will utilize steam turbine generators and transformers made by the company.

“These projects with CTR will take Fuji into an exciting new phase of renewable power generation in California," Muneo Sato, president and CEO of Fuji Electric Corp. of America, said in a statement.

At the signing ceremony in Tokyo, California Lt. Gov. Eleni Kounalakis applauded the companies’ plans: “Today’s announcement further solidifies California’s position as a global climate and economic leader and is a huge step towards a clean energy future and global decarbonization."

Janet Wilson is senior environment reporter for The Desert Sun. She can be reached at jwilson@gannett.com or on Twitter @janetwilson66

This article originally appeared on Palm Springs Desert Sun: Salton Sea lithium: $1.4B deal is next step in 'Lithium Valley' power