Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) has embarked on a significant venture by engaging DNV, a leading maritime certification agency, for the review of its H2Neo compressed hydrogen storage vessel, a move highlighted by Longspur Research.
This collaboration is a strategic move to leverage DNV's extensive expertise in gas transportation, which is pivotal for the H2Neo Class approval.
The construction of the prototype, led by engineering partner Prodtex in Norway, is set to begin during the current quarter and is expected to be completed in the June quarter,
Read: Provaris Energy engages DNV for FEED review ahead of Prototype Tank build
Small-scale hydrogen storage tanks
In tandem with this major project, Provaris is also advancing the development of small-scale hydrogen storage tanks.
Longspur Research says this initiative represents an opportunity to generate a near-term revenue stream, aligning with the rising European demand for hydrogen storage solutions as the 2030 deadline for RePowerEU's hydrogen production targets approaches.
Financial perspective
From a financial perspective, as of January 8, 2024, Provaris Energy's market capitalisation stood at A$27 million, with a notable 9.8% increase in share price over the past month.
However, Longspur said there had been a 27.4% decrease over the past three months.
The company's financial model predicts significant revenue beginning in 2027, largely due to the first Norwegian project.
Administrative expenses are expected to normalise post-2022, with a corresponding increase in net debt and equity due to anticipated capital expenditures.