The Vulcan Energy Resources Ltd (ASX: VUL) share price is storming higher on Monday.
In early trade, the lithium developer's shares are up 7% to $12.98.
Why is the Vulcan Energy share price storming higher?
The catalyst for the rise in the Vulcan Energy share price today has been an announcement relating to its Zero Carbon Lithium Project.
According to the release, Vulcan has appointed BNP Paribas as its financial advisor. It notes that the bank is a leader in sustainability with a strong track-record in advisory and financing of battery and renewable projects. This includes the 1.3 billion euros Northvolt's Gigafactory in Sweden and the 5.5 billion pounds Dogger Bank project in the UK.
The release explains that Vulcan and BNP Paribas will work together on a bankability review in the lead up to the Definitive Feasibility Study (DFS) and, upon its completion, on the structuring and execution of the financing of the Zero Carbon Lithium Project.
This Project aims to decarbonise the production of batteries for electric vehicles, by developing the world's first zero carbon lithium project. Excitement around this project has been a key driver of the staggering gains made by the Vulcan Energy share price over the last 12 months.
Management commentary
Vulcan Energy's Managing Director, Dr. Francis Wedin, was very pleased to be working with BNP Paribas.
He commented: "It is important to work with partners who share our sustainability goals and values. BNP Paribas is a leader in financing and advisory in the renewables and battery supply chain sector in Europe, with a strong focus on ESG. The combination of values, market presence and drive will be important factors in assisting us with the successful preparation and execution of financing our globally unique Zero Carbon Lithium Project."
This sentiment was echoed by BNP Paribas.
BNP Paribas' Head of Energy, Resources & Infrastructure, Séverine Mateo, said: "We are delighted to be appointed by Vulcan to assist in the Zero Carbon Lithium Project and help realising this significant step towards carbon neutrality in electric vehicle battery production. The road to energy transition requires significant increases in mineral consumption at the lowest possible level of carbon intensity, and BNP Paribasis committed to accompanying companies and economies in combating climate change."
The Vulcan Energy share price is up 325% since the start of the year.
