Turkish renewables firm to drill for geothermal lithium

Margün Energy intends to search for lithium in geothermal waters in Seferihisar in western Turkey, where it took over a 12 MW geothermal power plant. It also launched a project to add a photovoltaic unit of 5.4 MW to the existing facility and create a hybrid power plant.

Turkey, the fourth in the world in geothermal power capacity, also has significant potential for lithium extraction. The production of the mineral used in batteries can increase the cost-effectiveness of geothermal energy projects. Margün Energy, listed at the Istanbul Stock Exchange since 2021, said it would conduct exploration works on 3,125 hectares in Izmir province.

The company recently bought a geothermal power plant in the area for USD 16 million from RSC Elektrik. The 12 MW facility is in Kavakdere in Seferihisar district. Margün Energy denied speculation that it would mine lithium.

If it finds a valuable amount of the mineral in geothermal water, it will build an extraction plant, according to the update. Margün Energy issued the statement after local residents expressed concern over potential environmental damage from lithium mining.

“We have not obtained any mining permits. Furthermore, Margün Energy is not a mining company… Mining lithium, which is used in battery production, and extracting lithium from geothermal fluid by separating it are very different things,” the announcement reads.

Margün Energy to look for precious metals as well

The company said it would continue its investments in geothermal energy such as electricity production and greenhouse farming, arguing it would create jobs for locals. It suggested it could extract carbon dioxide for commercial use as well.

Margün Energy added it would explore the presence of precious metals in geothermal fluids.

Planned PV unit to generate 10 GWh per year

In addition, it submitted a proposal to the country’s Energy Market Regulatory Authority (EMRA or EPDK) for the installation of a photovoltaic unit with 5.4 MW in peak capacity. It would be added to the existing facility, creating a hybrid power plant. The solar power system would generate 10 GWh per year and increase revenue by USD 1.05 million, the company estimated.

The PV plant would lift Margün Energy’s total capacity to 135.4 MW. The company mostly operates solar power plants and works as a contractor for engineering, procurement and construction (EPC) and operations and maintenance.

Notably, it owns the largest stake in Enda Energy Holding. The affiliate operates four hydropower plants, five wind power plants, one geothermal power plant and three solar power plants of 200 MW altogether.

Margün Energy rallied 109% since the beginning of the year.