Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) is actively working with secured lenders to explore various pathways after the bankruptcy of Prodtex Industri AS, which had been contracted to progress the completion and testing of the company's Prototype Tank.
Prodtex AS had been due to design, construct and test Provaris' hydrogen Prototype Tank, subcontracting the work to its subsidiary, Prodtex Industri AS. The subsidiary filed for bankruptcy on June 3, 2024, due to major cost overruns on a separate contract, halting fabrication and welding activities on the Prototype Tank on June 6.
Prototype is the priority
Provaris’ immediate concern is the timely completion of its proprietary Prototype Tank.
To progress this, its priorities include submitting a proposal to secured lenders to resume construction.
The company is in discussions with Prodtex AS, the lenders and the executor of the Prodtex Industri bankruptcy, and is reviewing alternative contractors and sites in Europe experienced in automation and robotic laser hybrid welding.
Provaris has conducted productive meetings with the court-appointed executor of the bankruptcy and the group of secured lenders who control the Fiskå Facility in Norway, where the Prototype Tank was being constructed.
The lenders are working together to manage the facility and assets efficiently and have offered to communicate directly with Provaris to develop proposals for completing the Prototype Tank and potentially acquiring the Fiskå Facility.
Provaris is preparing key terms to submit to the lenders to restart construction as soon as possible, aiming to complete and test the tank within four to six months.
The company is also developing a detailed proposal to acquire the Fiskå Facility and related plant and equipment for the long-term construction of smaller scale hydrogen tanks – 1 to 10 tonnes capacity – based on the Prototype Tank, targeting industrial hydrogen users in Norway and the European Union.
Key personnel from Prodtex AS are cooperating with Provaris to maintain continuity of the required personnel at the Fiskå Facility.
Additionally, Provaris is exploring strategic partnerships for financial and operational support, aligning with its vision for cost and energy-efficient hydrogen storage and bulk marine transport using its H2Neo carrier.
About Provaris Energy
Provaris Energy is an Australian public company developing integrated green hydrogen projects for the regional trade of Asia and Europe.
The company focuses on innovative compressed hydrogen bulk storage and carriers, aiming to establish an early-mover advantage in regional maritime hydrogen trade.
Provaris Norway AS was established in August 2022 to advance hydrogen supply development in Europe.