Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) has advanced its collaboration with Uniper and Norwegian Hydrogen, executing a conditional term sheet for the supply, transport and offtake of renewable green hydrogen for a minimum of 10 years — a precursor to a binding hydrogen sale and purchase agreement.
Under the term sheet, 42,500 tonnes per year of RFNBO-certified hydrogen is to be delivered to Europe from sites in Norway and other Nordic regions as gaseous compressed hydrogen using Provaris' H2Neo carriers.
Uniper will buy the hydrogen at an agreed fixed price and is responsible for the receiving terminal in north-western Europe for delivery.
Regional supply locations from the Nordic region into northwest European ports with hydrogen import development plans linked to the future development of Germany’s core hydrogen network.
A key milestone
“We are delighted to see the collaboration has progressed to a term sheet for hydrogen supply and offtake,” said Provaris managing director and CEO Martin Carolan.
“This represents a key milestone for Provaris and validation towards developing regional bulk-scale hydrogen supply chains within Europe using Provaris' H2Neo compressed hydrogen carriers."
This term sheet provides the basis for negotiating a binding hydrogen sale and purchase agreement, which is targeted for June 2025.
First deliveries are targeted for early 2029, for a minimum term of 10 years — making this Europe's first regional hydrogen marine transport project at scale.
Execution of the term sheet marks a significant milestone under the August 2024 memorandum of understanding (MOU) and facilitates ongoing co-operation on developing hydrogen supply chains based on Provaris' compressed hydrogen carriers from Norway and other Nordic sites to north-western Europe.
Norwegian Hydrogen CEO Jens Berge said: "We're very excited about this tri-party collaboration, and it's rewarding for all three parties to see our efforts progress into increasingly concrete and advanced stages.”
Uniper senior vice president New Energies Origination Benedikt Messner added, “We think that the innovative transport concept by Provaris might be a solution to connect commercially interesting hydrogen supply locations with our core markets and look forward to the continuation of our collaboration.”
Hydrogen supply chain development
Provaris and Norwegian Hydrogen are collaborating on the development of the supply of RFNBO-compliant hydrogen, which will be stored and transported using Provaris' H2Neo carriers.
Work is underway to outline the preferred sites in the Nordics, including Norway and Finland. Sites with a detailed feasibility include the FjordH2 Project in Norway’s Alesund region.
Based on the proposed hydrogen volumes and shipping distance, the supply chain's storage and shipping infrastructure using Provaris' proprietary shipping solutions will include one H2Leo barge storage at the production site and two H2Neo hydrogen carriers.
Uniper will be responsible for the selection and development of the import terminal and is working with Provaris to outline the capital and operating equipment to discharge the H2Neo carriers.
Lower delivered cost of hydrogen
Analysis by the collaboration partners has highlighted that when customer demand is for hydrogen (not a derivative), regionally sourced hydrogen from the Nordics, transported through Provaris' compressed hydrogen carriers, provides an efficient and cost-effective supply chain.
This limits the losses in the entire chain from electrolyzer through to the distribution pipeline in Europe.
By lowering the energy consumption over the entire supply chain a more renewable energy is available for hydrogen production and higher volumes are delivered.