Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (July 2022)
65 slides from Vulcan Energy Resources's investor presentation, Jul 12, 2022
Slide 1: Zero Carbon Lithium Project
1 Zero Carbon LithiumTM Project For personal use only July-August 2022 Vulcan Energy Resources
Slide 2: Disclaimer
2 Disclaimer For personal use only No investment or financial product advice This Presentation, and the information provided in it, does not constitute, and is not intended to constitute, financial product or investment advice, or a recommendation to acquire Vulcan Shares, nor does it constitute, an
Slide 3: Vulcan Energy Resources
Vulcan Energy Resources 3 For personal use only is aiming to become the world’s first integrated lithium chemicals and renewable energy producer with net zero greenhouse gas emissions. Vulcan’s unique Zero Carbon Lithium™ Project aims to produce both renewable geothermal energy and lithium hydroxide
Slide 4: Right time
4 For personal use only Zero Carbon LithiumTM Project Right time Rapidly advancing the Zero Carbon Lithium™ Project to ensure timely market entry
Slide 5: How to support million EVs by 2030 in Europe?
5 How to support 30 million EVs by 2030 in Europe? For personal use only 1,000GWh lithium-ion EU: fastest growing Zero local supply battery capacity by 20301 lithium market in the world2 of lithium hydroxide 1.3M MILLION TONNES LCE REQUIRED EU: 0% 0.6M 0.04M Zero Carbon LithiumTM Project 2021 2025 2
Slide 6: Auto battery and cathode-makers committing to carbon neutrality
6 Auto battery and cathode-makers committing to carbon neutrality For personal use only ‘Reducing carbon footprint is not just reducing vehicle emissions while they are being operated, but also […] Current lithium production has a significant from the company's resource extraction and production pro
Slide 7: How to support the German energy crisis?
7 How to support the German energy crisis? For personal use only Energy % of gas German industry sounds alarm over energy rationing plan consumption in consumption in Germany⁶ Germany Germany enacts emergency gas plan as Russia wields rubble threat Germany says it is moving quickly to cut the cord o
Slide 8: EU and Germany prioritising rapid growth of renewable energy sources
8 EU and Germany prioritising rapid growth of renewable energy sources Climate targets For personal use only Geothermal energy Lithium production for EVs German coalition agreement1 includes: Order to secure the goal of Geothermal roadmap³ climate neutrality ▪ Installation of 70GWh of capacity, ▪ Ne
Slide 9: Right place
9 For personal use only Zero Carbon LithiumTM Project Right place Strategically placed in the heart of the European EV market to decarbonise the supply chain
Slide 10: We scoured the globe to find the right conditions
10 We scoured the globe to find the right conditions for our Zero Carbon Lithium™ development For personal use only We had the lithium and geothermal expertise to Lithium concentration know that a Zero Carbon Lithium™ Project was In brine (mg/L Lithium) possible using modern extraction methods, 181
Slide 11: Largest lithium resource at the centre of the fastest growing market
11 Largest lithium resource at the centre of the fastest growing market in the world Largest lithium resource in Europe: 15.85Mt LCE1 Planned European battery manufacturing projects in GWh For personal use only capacity – 11/2021 66 40 135 GWh 65 >410 GWh 106 Zero Carbon LithiumTM Project GWh 77 70
Slide 12: Potential European expansion in Italy
Potential European expansion in Italy 12 For personal use only Vulcan and Enel Green Power have signed a binding collaboration agreement Vulcan and Enel Green Power have signed a binding collaboration agreement to explore and develop its Cesano license in Italy on a 50:50 basis The Parties aim to en
Slide 13: Delivering a fully integrated renewable energy and lithium business
13 For personal use only Zero Carbon LithiumTM Project Delivering a fully integrated renewable energy and sustainable lithium chemicals business in Europe
Slide 14: Vulcan's renewable energy and lithium chemicals project
14 Vulcan’s renewable energy and lithium chemicals project Central Lithium Plant OUR PROJECT For personal use only Electric mobility Lithium hydroxide distributed to the EU market 6 LITHIUM BUSINESS Renewable Lithium chloride electricity and/or transported to the heat sold to the grid 2 5 central li
Slide 15: Commercially available technologies combined and adapted to be fossil-free
15 Commercially available technologies combined and adapted to be fossil-free For personal use only Our process incorporates technologies with commercial analogues across the world. What is unique about us is the proposed combination of these different steps, and our strict exclusion of fossil fuels
Slide 16: Our proposed expansion plan across the Upper Rhine Valley field
16 Our proposed expansion plan across the Upper Rhine Valley field PHASE 1 PHASE 2 For personal use only To be included in the ADDITIONAL LICENCES Target metrics from PFS, subject Target metrics from PFS, subject DFS to modifications in the DFS to modifications in the DFS Available to add capacity P
Slide 17: Taking advantage of and expanding from existing infrastructure
17 Taking advantage of and expanding from existing infrastructure BROWNFIELD PROJECT To be included DEVELOPMENT in the DFS For personal use only PHASE 1 - €XBn CAPEX 5km Currently assessing the feasibility of integrating lithium extraction Brine Brine offtake Geothermal Plant Natürlich Insheim (A1)
Slide 18: Geothermal division update
18 Geothermal division update For personal use only Sub-surface development Above surface development Geothermal drilling Renewable energy operations ▪ Vulcan Energy Sub-Surface ▪ Works at Vulcan’s Sorption ▪ Vulcan acquired two electric ▪ Vulcan acquired the Insheim (VESS) team is continuing to Dem
Slide 19: Geothermal division update
19 Geothermal division update For personal use only Development drilling preparation Geothermal plant design Drilling equipment ▪ First positive community decisions Zero Carbon LithiumTM Project ▪ Pre-design of DLE and plant in Landau ▪ Acquisition of two electric rigs in 2021 in Lionheart area (Lan
Slide 20: Vulcan to supply German energy company with renewable, zero carbon heat
20 Vulcan to supply German energy company with renewable, zero carbon heat LITHIUM BUSINESS For personal use only First of a number of planned district heating arrangements from geothermal energy to help combat Germany’s energy crisis. Vulcan and MVV Energie AG (MVV) have executed a binding purchase
Slide 21: Lithium division update
21 Lithium division update For personal use only Laboratory work Pilot plant Sorption-Demo plant CLP-Demo plant ▪ Lab and pilot studies active ▪ Pilot Plant 1, located at an ▪ Demo Plant fully integrated ▪ Experts from Nobian, Vulcan since April 2021, generating operational geothermal plant, with al
Slide 22: Sorption-type DLE: a commercial technology adapted to our local resource
22 Sorption-type DLE: a commercial DLE offers “significant promise of technology adapted to our local increasing supply, reducing the resource For personal use only industry’s environmental, social, and governance (ESG) footprint, and Direct lithium extraction (DLE) using sorption has a fifty-year d
Slide 23: Securing long term lithium supply contracts
23 Securing long term lithium supply contracts For personal use only Cathodes ▪ Binding lithium hydroxide offtake agreement ▪ Initial 5-year term, starting in 2025, which can be extended by further 5 years ▪ Minimum of 28,000t and a maximum of 42,000t of battery grade lithium hydroxide Lithium-ion b
Slide 24: Strategic partnership with Stellantis
Strategic partnership with 24 Stellantis For personal use only This represents the world’s first upstream investment in a listed lithium company by a top tier automaker. Vulcan has agreed a A$76M (€50M) equity investment from Stellantis Proceeds will go towards Vulcan’s planned production expansion
Slide 25: Dual revenues: energy and lithium
25 Dual revenues: energy and lithium LITHIUM BUSINESS For personal use only ENERGY BUSINESS LITHIUM BUSINESS Decarbonising Coal phase-out Bans for fossil Lithium hydroxide prices the grid in Germany heating systems $/t July 2022 Fastmarkets Contract price Grid Industries Cities 90,000 $75,000 80,000
Slide 26: Potential for very low OPEX operation
26 Potential for very low OPEX operation Select South American brine and Australian/Chinese mineral conversion vs Vulcan’s process For personal use only LiOH VIA HARD-ROCK PROCESSING US$51,212/t LiOH US$48,750¹ US$2,462² Feedstock €50,700/t LiOH Mineral Cost Conversion Cost Vulcan’s “feedstock” is e
Slide 27: Robust target project financials and production metrics from PFS
27 Robust target project financials and production metrics from PFS For personal use only ENERGY BUSINESS LITHIUM BUSINESS 74MW Power* 40,000tpy LiOH * Renewable heat sales to also be examined in DFS €0.7Bn NPV Pre-tax €0.5Bn NPV Post-tax €2.8Bn NPV Pre-tax €1.9Bn NPV Post-tax LITHIUM BUSINESS 16% I
Slide 28: Working hard to de-risk the project further
28 Working hard to de-risk the project further and address all identified risks Risk Mitigation For personal use only Drill rigs that can reach the deep geothermal reservoirs are Vulcan has agreed to acquire two electric drill rigs, re-purposed from the oil and gas industry, which can reach the targ
Slide 29: Environment, Social, Governance
Zero Carbon LithiumTM Project 29 For personal use only Environment, Social, Governance
Slide 30: Vulcan's fully integrated project
30 Vulcan’s fully integrated project Lithium For personal use only Battery Offtakers manufacturing Grid storage Electric vehicle Rewilding transition initiatives Renewable Better air power 2nd Life quality Human Improved Recyclable biodiversity capital Renewable lithium energy Local Sustainable Lith
Slide 31: Sustainability Highlights
31 Sustainability Highlights For personal use only Employ ~130 people up Carbon neutral certified 35% female employment from 70 in 2021 (Australia) Gender balanced board Leveraging the skillsets of ~20ktCO2 annual avoidance renewable Renewable Heat offtake significant numbers of ex-Oil & Gas electri
Slide 32: Sustainability framework
32 Sustainability framework The Vulcan Compass guides our sustainable For personal use only decision making - binding our purpose, mission, strategy and values together. The Vulcan Compass incorporates our 3 sustainability themes: Quality of Life - improving the quality of life for people, land and
Slide 33: Key ESG Initiatives
Key ESG Initiatives 33 For personal use only ▪ Certified carbon neutral organisation across the Vulcan Group ▪ Gender & diversity inclusive recruitment process ▪ Ensure 100% renewable energy is used to power operations ▪ External validation of gender pay parity ▪ Increase renewable energy use by 50%
Slide 34: Materially improving the global battery chemicals supply chain
34 Materially improving the global battery Lithium Chemicals Spodumene chemicals supply chain For personal use only Process development and R&D ENVIRONMENT development of world’s first lithium Strict Zero and renewable energy co- Carbon focus production process in Pre- Feasibility Study: Zero Carbon
Slide 35: Leading environmental credentials
35 Leading environmental credentials For personal use only Per tonne of lithium hydroxide produced CARBON EMISSIONS WATER CONSUMPTION LAND USE REAGENTS CONSUMPTION WASTE GENERATION (Scope 1,2,3) Tonnes CO2 m3 m2 Tonnes Tonnes Zero Carbon LithiumTM Project Hard rock mining Evaporation ponds 60% of wo
Slide 36: Four pillars of community engagement
36 Four pillars of community engagement For personal use only Public affairs Media engagement Community outreach Partnerships/ cooperation ▪ Discuss and exchange ▪ Raise awareness ▪ Community roadshows, ▪ Conduct research ideas regularly with through in-depth school presentations, projects with poli
Slide 37: Informing the community
37 Informing the For personal use only community Building trust and understanding • Hosted eight roadshow events in the South Palatine Region, Germany with information stalls in six municipalities Hosted three roadshow events in the Ortenau Region, Germany with information stalls in city of Bühl Zer
Slide 38: The right team for the job
Zero Carbon LithiumTM Project 38 For personal use only for the job The right team
Slide 39: Board of Directors
39 Board of Directors For personal use only Dr. Francis Wedin Managing Director & Gavin Rezos Ranya Alkadamani Founder-CEO Chair Non-Executive Director Founder of Vulcan Zero Carbon Lithium™ Project. Lithium Executive Chair/CEO positions of three companies that grew from Founder of Impact Group Inte
Slide 40: Leadership team
40 Leadership team Dr. Francis Wedin For personal use only Managing Director & Renewable Energy Business Founder-CEO Dr. Horst Kreuter Markus Ruff Executive Director Thorsten Weimann CEO Germany Chief Operating Officer Vulcan Energy Engineering Tobias Hochschild Vincent Ledoux-Pedailles Dr Stephen H
Slide 41: Target project timeline
41 Target project timeline For personal use only 2022 2023 2024 2025 + Further exploration, 3D seismic surveys & acquisition, geological analysis Drilling and construction Phase 1 Phase 1 Phase 2 Phase 2 Phase + Phase+ Pre-Feasibility and Definitive Feasibility Studies (PFS & DFS) Production Phase 1
Slide 42: Share price and capital structure
42 Share price and capital structure ASX : VUL Shares on Issue 143,335,301 For personal use only Performance Shares* 91,174 Performance Rights 8,473,427 Market Capitalisation at $5.39 (undiluted) ~$773M Cash Position (as at 30 June 2022 - unaudited) €176M Top 20 Stakeholders ~59.10% Management (undi
Slide 43: Conclusion
43 Conclusion For personal use only Commercial geothermal In-house drilling for mass Europe’s largest lithium Resource, energy plant in operation geothermal deployment potential for stepwise production growth Site for Central Lithium AUD$400 million capital Five binding lithium Plant secured. Pilot
Slide 44: Appendices
Zero Carbon LithiumTM Project 44 For personal use only Appendices
Slide 45: Appendix 1: Vulcan's integrated renewable energy and lithium project description
Regulations & 45 Appendix 1: Vulcan’s integrated renewable energy and lithium project description Initiatives Germany European Union For personal use only Bans for Sector backed by ESG and EU funds Coal phase-out EU New Battery regulation fossil heating looking to finance the green transition in Ger
Slide 46: Appendix 2: Largest JORC lithium resource in Europe
46 Appendix 2: Largest JORC lithium resource in Europe For personal use only Germany Probable Reserve 0.7 Ortenau License Indicated Resource 2.06 Inferred Resource 10.8 Total 12.86 Probable Reserve 0.42 License Indicated Resource Taro 0.83 Inferred Resource 1.44 Total 2.27 France Probable Reserve 1.
Slide 47: Appendix 3: Europe-focused and DLE lithium projects peer comparison
47 Appendix 3: Europe-focused and DLE lithium projects peer comparison references For personal use only Company1 Code Project Stage Resource Category Resources M tonnes Resource Grade (Li2O) Contained Mt LCE Tonnes Information Source Corporate Presentation July 2021 - Company European Metals ASX: EM
Slide 48: Appendix 4: Vulcan will supply leading actors across the lithium-ion battery supply chain
48 Appendix 4: Vulcan will supply leading actors across the lithium-ion battery supply chain For personal use only Battery metals Cathodes Lithium-ion batteries Electric vehicles Zero Carbon LithiumTM Project
Slide 49: Appendix 5: EU lithium-ion battery capacity
49 Appendix 5: EU lithium-ion battery capacity For personal use only Zero Carbon LithiumTM Project >1,000GWh LITHIUM-ION BATTERY CAPACITY PLANNED BY 2030 Source: CIC energiGune 06/2022
Slide 50: Appendix 6: Global DLE assets and projects
50 Appendix 6: Global DLE assets and projects Energy Lake Lanke Zangge Jintai Eramet/ Standard Vulcan Berkshire Compass Company Livent Rio Tinto CTR Source Resources/ E3 Metals Lithium Lithium Lithium Tsingshan Lithium Energy Hathaway Minerals Minerals Lilac For personal use only Hombre Centenario-
Slide 51: Appendix 7: DLE Projects and Assets - References
51 Appendix 7: DLE Projects and Assets - References For personal use only Livent https://s22.q4cdn.com/453302215/files/doc_presentations/2021/11/Livent-Investor-Presentation_for-website.pdf https://www.linkedin.com/pulse/from-catamarca-qinghai-commercial-scale-direct-lithium-alex-grant/ Lanke Lithiu
Slide 52: Appendix 8: Vulcan supported by EU-backed group
52 Appendix 8: Vulcan supported by EU-backed group For personal use only EIT InnoEnergy will marshal its ecosystem and significant EU- wide resources to launch the Zero Carbon Lithium Project forward: • Securing project funding, including the use of applicable EU, national or regional grant schemes,
Slide 53: Appendix 9: Lithium market dynamics favour sustainable lithium production
53 Appendix 9: Lithium market dynamics favour sustainable lithium production For personal use only Technology & Costs Sustainability Market Balance Prices ‘We expect DLE technology to dominate the future “Geothermal lithium extraction has a much lower “Incorporating the stronger demand outlook “Lith
Slide 54: Appendix 10: The new EU Battery Regulation and initiatives
Other EU measures 54 Appendix 10: The new EU Battery Regulation and initiatives supporting lithium: For personal use only New measures announced in December 2020 including: 1. Responsible sourcing : New mandatory procedures to ensure sustainable and ethical sourcing of raw materials such as lithium.
Slide 55: Appendix 11: Geothermal brine composition comparison
55 Appendix 11: Geothermal brine composition comparison Mg/kg Mg/kg For personal use only The Salton Sea in California 1 2 The Upper Rhine Valley in Germany Zero Carbon LithiumTM Project Note: Refer to ASX announcement of 10 March 2021 “High grade lithium, low impurity results from Vulcan’s 2021 Upp
Slide 56: Appendix 12: Vulcan secured site for its planned commercial lithium hydroxide plant
56 Appendix 12: Vulcan secured site for its planned commercial lithium hydroxide plant For personal use only • Vulcan signed an agreement with chemical park management company Infraserv, to secure a site for its planned Central Lithium Plant (CLP) at the Höchst Chemical Park, located just outside of
Slide 57: Appendix 13: Target project economics from PFS - CAPEX
57 Appendix 13: Target project economics from PFS - CAPEX ENERGY BUSINESS LITHIUM BUSINESS For personal use only 1 Geothermal Plant 2 Sorption Plant 3 CLP FULL PROJECT 2 geothermal plants: 2 Sorption plants: 1 Central Lithium Plant €473M PHASE 1 • GB1 – 8MW • SB1 – 8kt LiOH • CLP1 - 15kt LiOH 2024 S
Slide 58: Appendix 14: Target project economics - possible structures
58 Appendix 14: Target project economics - possible structures Numbers are based on the PFS published in 2021 and are subject to change Phase 1 developed first, separated in two different Phase 2 developed second, separated in two For personal use only Full project developed at the same time but sep
Slide 59: Appendix 15: The fossil fuel era in Europe is coming to an end
59 Appendix 15: The fossil fuel era in Europe is coming to an end For personal use only 2020 2030 2040 2050 Europe is aiming for carbon neutrality, but the EU’s energy transition is far from being complete: 30.7% RE in Power Renewable Energy (RE) 19.5% RE in Heat 7.6% RE in Transport • Combustion en
Slide 60: Appendix 16: Project development timeline: example for one project area
60 Appendix 16: Project development timeline: example for one project area ~4 years For personal use only Exploration Approvals Subsurface Development Construction Production Development Independent and transparent review, monitoring & reporting Project data generation 2D & 3D seismic Circulation Te
Slide 61: Appendix 17: Brine flow rates
61 Appendix 17: Brine flow rates For personal use only Until we drill our first wells, risks around flow rate will remain. However, Vulcan believes it has an appropriate level of confidence around its flow rates assumptions, based on the experience of its team, and state-of-the-art scientific tools,
Slide 62: Appendix 18: Vulcan & Circulor lithium traceability
62 Appendix 18: Vulcan & Circulor to establish world-first full lithium traceability & transparency across the EU supply chain For personal use only Circulor offers a software solution that enables customers to track raw materials and CO2 emissions through supply chains to demonstrate responsible so
Slide 63: Appendix 19: R&D projects
63 Appendix 19: R&D projects For personal use only Effeo Increasing efficiency of geothermal CROWDTHERMAL power plants Empowering the European public to directly participate in the via Project Management Jülich development of geothermal projects with the help of alternative financing schemes (crowdf
Slide 64: Vulcan Group: integrated, in-house capability to execute on our strategy
64 Vulcan Group: integrated, in-house capability to execute on our strategy Renewable energy Lithium Sustainability Finance Customers For personal use only VEE Above-surface Vulcan’s expertise and assets geothermal engineering Fully equipped Carbon neutrality team Strong cash position Five definitiv
Slide 65: Thank you
65 Thank you For personal use only Media and Investor Relations Germany Beate Holzwarth Chief Communication Officer bholzwarth@v-er.eu Australia Jessica Bukowski PR & IR Manager jbukowski@v-er.eu Zero Carbon LithiumTM Project @VulcanEnergyRes | www.v-er.eu | info@v-er.eu ASX:VUL FSE:VUL 65
Vulcan Energy Resources — Investor Presentation (July 2022) on 6ix