The Vulcan Energy Resources Ltd (ASX: VUL) share price is tracking higher in afternoon trading today after spending much of the morning in the doldrums.
At the time of writing, shares in the geothermal energy and lithium producer are up 0.86%, trading at $10.56 after a positive company announcement today.
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What did Vulcan announce?
In its release, Vulcan told ASX investors that German renewable energy industry heavyweight, Dr Günter Hilken, has joined its board. The company expects Dr Hilken's appointment will advantage Vulcan in its push for geothermal energy to replace Russian gas supplies to Germany.
Dr Hilken is a senior advisor to Macquarie Asset Management and a director of the German energy services company, Currenta.
He is also president and chairs the board at the influential German Federation of Industrial Energy Consumers (VIK). The VIK represents 80% of industrial energy consumption and 90% of electricity production independent from utility firms in Germany.
Vulcan wants to make geothermal energy a foundation of Germany's sustainable renewable energy supply. It is seeking to capitalise on Germany's desire to transition away from local carbon-based energy sources and Russian gas.
What's Russia got to do with it?
Europe is one of Russia's biggest energy customers, with the country supplying 40% of Europe's gas imports for heating.
As part of the West's backlash against the Russian invasion of Ukraine, Germany is now seeking to reduce its energy dependence on Russia.
Vulcan hopes to be part of the solution as a producer of geothermal energy in Germany's Upper Rhine Valley.
Management commentary
Dr Hilken will join the Vulcan board as a non-executive director. Chair Gavin Rezos said Dr Hilken's skills and connections within German industry and government would be "invaluable".
Vulcan is very fortunate to obtain Dr Hilken's skills and deep connections within German industry, government and the renewable power sector.
These skills will be invaluable to the Board and in Vulcan's drive for German geothermal energy to replace Russian gas used in heating.
Dr Hilken's background in the chemical industry and supply chains will also benefit Vulcan in developing its Zero Carbon Lithium Project.
The Zero Carbon Lithium Project aims to produce geothermal energy and lithium hydroxide for electric vehicle batteries from the same deep brine source in the Upper Rhine Valley.
Vulcan share price snapshot
The Vulcan share price is up 70% over the past 12 months, but it has been one of few ASX energy/resource shares to slip in 2022.
Vulcan shares have fallen by 3% year-to-date. This compares to a 22% gain for the S&P/ASX 200 Energy Index (ASX: XEJ). The gain is due to disrupted global energy supplies as a result of the Russia-Ukraine conflict.
Vulcan has a market capitalisation of $1.37 billion based on its current share price.
