Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) says its engagement with hydrogen suppliers and off-takers is bearing fruit, noting increased interest in developing future hydrogen supply chains using the company’s compressed hydrogen storage and carriers.
European hydrogen supply chain
The company continues to optimise its analysis to showcase the economic and commercial advantages of a compressed hydrogen supply chain from regional grid-connected sites in the Nordic countries, delivered as gas to the core hydrogen network in Europe.
Provaris' management team has made progress through workshops and analysis focusing on the scope and objectives under existing Memorandums of Understanding (MoUs) and collaborations announced in recent months.
This work supports Provaris' aspirations to position itself as a viable alternative for regional supply of gaseous hydrogen to Europe.
Each agreement is moving towards binding commitments, clarifying commercial returns and timelines.
Provaris is progressing through technical and economic due diligence with several new parties interested in collaborations and partnerships.
This aligns with Provaris' goal to develop around 1.5 gigawatts (GW) in hydrogen supply chains by 2030, transporting 250,000 tonnes of hydrogen to Europe using a fleet of 10-15 H2Neo carriers.
Need for bulk-scale storage
Key drivers for Provaris’ approach include the critical need for bulk-scale storage and transport solutions, the scarcity of gaseous hydrogen export projects and the unique IP and efficiency of compression technology.
German utilities are seeking regional projects that can supply gaseous hydrogen aligning with customer demands and timing requirements, and Provaris is in the process of capitalising on this demand.
A raft of activities over the past 12 months has positioned the company to advance its hydrogen supply chain model through several commercial agreements, including:
- MoUs with three German utility companies, including Uniper Global Commodities, for hydrogen supply projects;
- collaboration with Global Energy Storage (GES) to establish a compressed hydrogen import facility at the Port of Rotterdam, targeting operation by 2028;
- partnership with Norwegian Hydrogen to develop large-scale green hydrogen projects in Norway, Finland and Denmark;
- renewed interest from Iberian developers of hydrogen production sites conducting due diligence on shipping compressed hydrogen to Europe; and
- collaboration with original equipment manufacturers (OEMs) to refine compression design plants and requirements.
Provaris contends that the readiness of a hydrogen supply project, bankable off-take or distribution network in the target market often dictates the critical path for many engagements, rather than solely the readiness of a shipping solution.
Low-cost supply, regional focus
The recent EU Hydrogen Bank pilot auction underscored the potential for low-cost hydrogen supply from the Nordics and Iberia, supporting Provaris' regional focus.
This auction allocated €720 million across seven projects, expected to produce 158,000 tonnes of hydrogen annually.
Norway remains a strategic focus for Provaris due to advancements in compressed hydrogen projects and developments within shipping, transport and industrial applications.
Recently, Enova SF, a Norwegian Government agency, awarded NOK 1.2 billion (~US$ 120 million) to six shipping companies for the construction of hydrogen and ammonia-fuelled ships.