One of the more interesting parts of the recent investor webinar...

One of the more interesting parts of the recent investor webinar was the commentary about the advanced negotiations Vulcan have reached regarding partnering with a Oil & Gas company to invest into the geothermal/DLE component of the business via a Special Purpose Vehicle (SPV).

As Francis noted, Vulcan has more in common with O&G companies that they do with traditional mining companies - hence the expertise of Cris Moreno being sought. On a side note, he is a very impressive operator - speaks incredibly well and can see why he's been slotted in as Deputy CEO.

I also like the level of pragmatism shown by Francis and the board, who naturally have a left bent and clearly opposed to the fossil fuel economy - but in this instance, they are prepared to overlook their philosophical objections and formed the view that it is better to work with them as they transition their businesses to be more 'green' and bring their technical expertise and balance sheet.

The big question for me is - which O&G company are they most likely to partner with? The major European O&G companies are the most likely suitors given this project is very much positioned as a 'European project for European automakers". Therefore BP, Shell & Total could all be in the mix and all three are investing more and more in 'green projects' such as hydrogen and electric charging stations etc.

If I was to guess - I would go with Total. The reason is our French Commercial Manager, Vincent Ledoux Pedailles has been leading the negotiations with OEM offtakes and there is a distinct French theme with Renault and Stellantis being the major customers and of course Stellantis is Vulcan's second largest shareholder. Furthermore, with the recent expansion into France, which is the focus for Stage 3, having Total as a key partner would be highly advantageous to navigate the French bureaucracy and Francis seemed to hint at the end of the investor webinar, they have big plans on the French side.

I suspect@camban might have a few views on the pros/cons of Total given another stock we both own has been stuck in negotiations with Total for a long time! However, i suspect the Vulcan team is slightly more polished on the negotiating front and may not result in the long drawn out saga the other ASX company is experiencing.