Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) has inked a binding joint development agreement with Yinson Production Offshore Pte Ltd for the development of carbon dioxide (CO2) storage tank solutions.
The two companies will evaluate the technical and economic viability of adapting PV1’s proprietary hydrogen compression tank design to develop cost-effective innovations for the bulk-scale storage and transport of compressed and liquid CO2.
The collaboration will also look at other gas compression options including ammonia, combining Yinson Production’s long track record in floating production, storage, and offloading (FPSO) vessels for the offshore production industry with Provaris' proven expertise in creating designs for bulk marine storage and transportation.
Meeting carbon capture demands
“We recognise the importance of carbon capture and storage in achieving global emission targets, and we're committed to playing a key role in this space,” Yinson Production chief technical officer Lars Gunnar Vogt said.
“Our collaboration with Provaris Energy will leverage our combined expertise to develop cost-competitive and innovative solutions for CO2 storage and transportation.
“We're excited to explore the potential of adapting Provaris' proprietary tank design for compressed hydrogen to meet the needs of the growing carbon capture market.
“This collaboration is a significant step forward in Yinson Production’s plans to drive the carbon value chain.”
The two companies believe developing technology to compress, store, transport and deploy carbon dioxide will be crucial for the widespread adoption of carbon capture and storage technologies, which is considered a necessary element of achieving global emissions targets by many within the industry.
Exploring alternative commercialisation options
“This is an extremely exciting partnership and highlights the transferable technology and design of Provaris’ proprietary tank IP and shipping solutions,” Provaris Energy managing director and CEO Martin Carolan said.
“The CO2 market is already well-developed and seeking cutting-edge, scalable and cost-effective storage and transport solutions.
“We are grateful to be working alongside another reputable partner in Yinson, as we broaden the focus and application of our advanced development in proprietary tanks.
“This opportunity allows Provaris to explore alternate pathways in the commercialisation of its tank technology in partnership with an industry leader in the offshore industry.”
The materials terms of the joint development agreement includes:
- A binding agreement between Provaris and Yinson Production to complete the agreed work program and corresponding budget for the CO2 Tank Project.
- The allocation of CO2 Tank Project costs and a fee to Provaris for the provision of related intellectual property access and services.
- Exclusivity provided to Yinson for the adaption and use of Provaris’ technology for the storage and marine transportation of CO2 and NH3.
- Development of new intellectual property in relation to CO2 and NH3 storage and shipping will be jointly owned by Provaris and Yinson Production.
- Each party retains ownership of its existing intellectual property.
- A term of 24 months.