Vulcan Energy Resources Limited (ASX: VUL) has appointed leading global financial institution, Natixis CIB, as its ESG Coordinator, with an aim to secure the first ever green financing with green enabling features.

Vulcan is a fully integrated renewable energy and lithium company, with access to the largest lithium resource in Europe, and is on track to becoming the first fully domestic sustainable lithium producer in Europe. Its Zero Carbon Lithium™ Project (the Project) aims to produce both renewable geothermal energy, and lithium hydroxide for Electric Vehicles (EV) batteries, from the same deep brine source in Germany’s Upper Rhine Valley. Vulcan aims to produce 24,000 tonnes of lithium hydroxide monohydrate per annum that could equip 500,000 EVs. The company has binding lithium offtake agreements with some of the largest cathode, battery, and automakers in the world, including Stellantis, Renault, Umicore and LG Energy Solution. The Project is expected to have a substantial positive environmental impact as Vulcan will use zero fossil fuels in its lithium hydroxide production process.

The financing is structured to be labelled as green, in line with the Loan Market Association’s Green Loan Principles and the International Capital Market Association (ICMA) Green Enabling Projects Guidance.

Commenting on the announcement, Vulcan Energy’s Group Chief Financial Officer, Felicity Gooding, said: “Working towards this green financing structure from Natixis CIB further supports Vulcan’s credentials as a leading participant in the green energy market.

‘’There is strong investor and lender appetite for green label finance, and our arrangement with Natixis CIB will allow us to better communicate our environmental sustainability objectives, including management of any material risks associated with the Project and assist with reporting requirements, as per the Green Loan Principles.

“We look forward to fully implementing our green financing partnership with Natixis CIB, to the benefit of our growing investor base both here in Australia and in Europe.”

Natixis CIB Global Head of Green & Sustainable Hub, Orith Azoulay, said: “Natixis CIB is pleased to accompany Vulcan Energy in the structuring of the first Green Financing aligned with ICMA’s Green Enabling Guidance.

“We consider Vulcan energy as an ideal green enabling candidate as its activities are necessary components of net zero scenarios with clear and attributable environmental and social benefits and mitigated adverse social and environmental impacts.”

The appointment of Natixis CIB as ESG Coordinator follows Vulcan Energy’s recent development in securing new licences in the Alsace region of France. The licences encompass several large industrial areas with factories and chemical parks requiring renewable energy and sustainable heating solutions.

Investor Relations:

Kurt Walker | Head of Investor Relations | kwalker@v-er.eu | +61 8 6331 6156

Media

Australia:

Judith Buchan, Communications Lead APAC | jbuchan@v-er.eu | +61 411 597 326

International:

Annabel Roedhammer, Vice President Communications | aroedhammer@v-er.eu | +49 (0) 1511 410 1585