The Vulcan Energy Resources Ltd (ASX: VUL) share price is soaring after the company announced its Zero Carbon Lithium Project will produce negative carbon emissions.
Vulcan has found the project will remove 2.9 tonnes of carbon dioxide from the atmosphere for every tonne of lithium hydroxide monohydrate produced.
Right now, the Vulcan share price is $10.76, 8.14% higher than its previous closing price.
Let's take a closer look at today's news from Vulcan.
Negative CO2 emissions
The Vulcan share price is charging after the company announced its updated life cycle assessment from its Zero Carbon Lithium Project found it will produce negative carbon emissions.
The new assessment includes data from the project's previously updated pre-feasibility study.
The Zero Carbon Lithium Project – located in Western Germany – is Europe's largest lithium resource.
The company will use renewable geothermal energy to power the project. In fact, it will produce more renewable energy than it will use, returning the excess to the German electricity grid.
Vulcan is also refusing to use fossil fuels in its planned operations – a decision it says is industry-leading.
The new life cycle assessment also leaves the company's project with the lowest planned carbon footprint in the world's lithium industry.
In addition, the brine that Vulcan's lithium will be extracted from will be returned to its original state. Thus, the project will use less water than other lithium extraction methods.
Vulcan also noted Western Germany has more water than it needs. This contrasts with other lithium projects – such as those in Western Australia and Chile – which are removing water from environments that need it.
Commentary from management
Vulcan's managing director Dr Francis Wedin commented on the news driving the company's share price today:
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. European consumers and regulators expect to see actual measured carbon footprint reduction from industry, not just aspirations or untested claims.
Vulcan share price snapshot
Vulcan is seemingly proving that going green pays in dividends.
The Vulcan share price has gained 275% since the start of 2021. It has also increased by 1,949% since this time last year.
The company has a market capitalisation of around $1.12 billion, with approximately 108 million shares outstanding.
