Vulcan achieves world first S&P Global Dark Green rating

Vulcan achieves world first S&P Global Dark Green rating 
 

Green Financing Framework complete, awarded Dark Green status

First ever project under the ICMA Green Enabling Guidance

Important validation during debt financing process
 

Vulcan Energy Resources Limited (Vulcan, ASX: VUL, FSE: VUL, the Company) has been assessed by leading independent ratings agency, S&P Global Ratings, and awarded a Dark Green rating overall, the highest ever received by a Metals and Mining company globally. Vulcan was also awarded a Dark Green rating across the Green Enabling Project and Renewable Energy categories.

This has been completed as part of its Green Financing Framework (Framework) with the bank Natixis CIB, as ESG Co-ordinator, highlighting the Company’s sustainability credentials to international lenders as part of its Phase One Project financing.

An S&P Global Second Party Opinion (SPO) assesses whether the Framework aligns with third-party published sustainable finance principles, including the International Capital Market Association (ICMA) Green Bond Principles and Green Enabling Projects Guidance, and the Loan Market Association (LMA) Green Loan Principles. S&P Global Ratings’ Shades of Green methodology includes six shades which can be designated to activities, with a Dark Green rating awarded to activities that correspond to the long-term vision of the low-carbon climate resilient future (per table below).

                Source: S&P Global Ratings

Vulcan’s integrated ZERO CARBON LITHIUM™ Project (the Project) consists of co-producing renewable energy and battery-grade lithium through lower-impact production and processing methods when compared to legacy methods. The Company applies Adsorption-type Direct Lithium Extraction (A-DLE), through its proprietary inhouse sorbent, VULSORB®, to efficiently produce lithium from brines.

Vulcan’s Phase One Project will produce 24,000 tonnes per annum of battery grade lithium hydroxide, sufficient to supply around half a million electric vehicles (EVs) per annum, as well as renewable energy of up to 275 GWh power p.a. and up to 560 GWh heat p.a.

The Company recently issued an updated debt package, including detailed due diligence reports, to its structuring group, consisting of the European Investment Bank, export credit agencies from France, Canada, Australia and Italy, and structuring banks ABN AMRO, ING, Natixis CIB and UniCredit. The current stage of the financing of Phase One involves widening the lending pool to other commercial banks, with the Framework seen by Vulcan as a key endorsement of the Project’s importance in the European energy transition.

Group Chief Financial Officer, Felicity Gooding, commented: “A world-first Dark Green global rating by S&P for a resources company has reaffirmed Vulcan’s sustainability credentials, coming at an important time in Phase One Project financing.

“In awarding Vulcan a Dark Green rating - across multiple categories - S&P Global has cemented our sustainability credentials and expectation that the Project will have a substantial positive environmental impact. Vulcan is rightfully regarded as a global leader in the green energy transition, and this development validates the integrity and transparency of our operations.”

For and on behalf of the Board

Daniel Tydde | Company Secretary

Media

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

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

Please contact Vulcan’s Legal Counsel Germany, Dr Meinhard Grodde, for matters relating to the Frankfurt Stock Exchange listing on mgrodde@v-er.eu.

About Vulcan

Founded in 2018, Vulcan’s unique Zero Carbon Lithium™[1] Project aims to decarbonise lithium production, through developing the world’s first carbon neutral lithium business, with the co-production of renewable geothermal energy on a mass scale. By adapting existing technologies to efficiently extract lithium from geothermal brine, Vulcan aims to deliver a local source of sustainable lithium for Europe, built around a carbon neutral strategy with exclusion of fossil fuels. Already an operational renewable energy producer, Vulcan will also provide renewable electricity and heat to local communities. Vulcan’s combined geothermal energy and lithium resource is the largest in Europe[2], with license areas focused on the Upper Rhine Valley, Germany. Strategically placed in the heart of the European electric vehicle market to decarbonise the supply chain, Vulcan is rapidly advancing the Zero Carbon Lithium™ Project to target timely market entry, with the ability to expand to meet the unprecedented demand that is building in the European markets. Guided by our Values of Climate Champion, Determined and Inspiring, and united by a passion for the environment and leveraging scientific solutions, Vulcan has a unique, world-leading scientific and commercial team in the fields of lithium chemicals and geothermal renewable energy. Vulcan is committed to partnering with organisations that share its decarbonisation ambitions and has binding lithium offtake agreements with some of the largest cathode, battery, and automakers in the world. As a motivated disruptor, Vulcan aims to leverage its multidisciplinary expert team, leading geothermal technology and position in the European EV supply chain to be a global leader in producing zero fossil fuel, carbon neutral lithium while being nature positive. Vulcan aims to be the largest, most preferred, strategic supplier of lithium chemicals and renewable power and heating from Europe, for Europe; to empower a carbon neutral future.

Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward-looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Vulcan operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward-looking statement. No forward-looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Vulcan’s control.

Vulcan does not undertake any obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Vulcan, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward-looking statement. The forward-looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by Vulcan. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.

Vulcan has carried out a definitive feasibility study (“DFS”) and bridging engineering study (“Bridging Study”) for Phase One of its Zero Carbon Lithium™ Project (“Project”), the results of which were announced to the ASX in the announcements "Zero Carbon Lithium Project Phase 1 DFS Results" dated 13 February 2023 (“DFS Announcement”) and “Positive Zero Carbon Lithium™ Project Bridging Study Results” on 16 November 2023 (“Bridging Study Announcement”). This announcement may include certain information relating to the DFS and the Bridging Study. The DFS and Bridging Study are based on the material assumptions and parameters outlined in their respective announcements. While Vulcan considers all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that the range of outcomes indicated by the Bridging Study or DFS will be achieved. This presentation may also include certain information relating to Phase 2 of its Project, Vulcan has not yet carried out a definitive feasibility study for Phase Two of its Project.

^[1] Please see page 13 of our Sustainability Report FY2023 for how we define Zero Carbon Lithium^TM

^[2] According to public, JORC-compliant data. See Upgrade of Zero Carbon Lithium™ Project Resources, 29 September 2023