Vulcan Share Price Soars 15% after Eco-Friendly Project Announcement (ASX:VUL)

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The Vulcan Energy Resources Ltd [ASX: VULshare price is soaring on ‘industry-leading’ life cycle assessment results.

ASX VUL - Vulcan Share Price ChartSource:

The ‘industry-leading Life Cycle Assessment’ results of the Perth-based lithium producer have been announced, and the verdict is in:

Its Zero Carbon Lithium Project is officially set to produce negative carbon emissions.

This is exciting news for shareholders and a step in the right direction for the company’s strategic shift in catering to an increasingly environmentally-conscious clientele.

As a result, the share price has risen over 15% and is currently sitting at $11.48 a share in afternoon trade.

Blue skies ahead for Vulcan

This latest announcement comes on the back of a great month for Vulcan, who only just recently announced a five-year partnership with European car giant Renault, as well as a lithium offtake agreement with the world’s largest producer of lithium-ion batteries, LG Energy Solutions.

But today’s report is the icing on the cake, with several highlights likely attracting investors today.

Let’s start with looking at the globally unique Zero Carbon Lithium Project.

In the report, it’s noted that this project ‘has been designed from its inception to help decarbonise the German electrical grid and lithium supply chain simultaneously.’

It’s a combined lithium chemicals and renewable energy project located in the Upper Rhine Valley of Germany.

Vulcan originally commissioned the world’s very first Life Cycle Assessment (LCA) and global study on the environmental footprint of lithium hydroxide production.

Now it has once again commissioned a company called Minviro to update its LCA based on recent data from Vulcan’s Pre-Feasibility Study.

The new results show that the Zero Carbon project will emit a negative 2.9t of carbon dioxide per tonne of lithium hydroxide.

According to public data, this would mean that Vulcan’s project has the ‘lowest planned carbon footprint in the world compared to any LCA results previously published in the lithium industry.

So just how exactly has Vulcan managed to achieve this feat?

The negative emission rate is reported as:

A product of the significant impact offset generated by renewable geothermal energy production as well as use of geothermal heat to drive lithium processing.’

In addition, Vulcan’s decision to completely exclude fossil fuels from its operation plans has set the company up to be an industry leader in this space.

The company appears to have fast-tracked its development to supplying the EU’s battery and electrical vehicle industry, and the market’s going wild.

Strong words from VUL management

A key highlight in today’s announcement is the re-establishment of Vulcan’s core mission for the years ahead.

Managing Director Dr Francis Wedin commented:

This LCA update is part of our commitment to continuously scrutinise our environmental footprint as we develop our project and scale up with the highest standards of integrity.

At Vulcan, our mission is to produce lithium for batteries with the highest environmental performance of any lithium chemical produced anywhere in the world.

We are doing the hard scientific work of decarbonisation by intentionally deploying technologies with lower environmental impacts.

Dr Wedin added:

European consumers and regulators expect to see actual measured carbon footprint reduction from industry, not just aspirations or untested claims. Vulcan intends to produce the lithium products that the electrification revolution deserves.’

The industry has grown increasingly competitive, but Vulcan appears to be a strong contender in the race to lead the charge.

We are seeing a shift worldwide towards greener energy, with the adoption of electric vehicles at the forefront of this shift.

Energy investors are seeking stocks that have the potential to capitalise on the green theme, with Vulcan Energy one of many alternatives.

Here at Money Morning, we have a free report profiling the lithium industry and three ASX lithium stocks that could potentially thrive in 2021.

Simply click here to get your free copy.


Lachlann Tierney,
For Money Morning

PS: In this new report, Money Morning’s Ryan Dinse reveals why he is convinced that lithium is going to rebound in 2021. Get the FREE Report

About Lachlann Tierney

Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest…

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