Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) has welcomed independent research studies reinforcing the outcomes of Provaris’ 2023 Hydrogen Transport Comparison Report, which highlighted the efficiency of PV1’s proposed production and distribution networks.
Read: Provaris Energy discusses report showing benefits of compressed hydrogen supply chain
The studies – completed by the German Federal Ministry for Economic Affairs and Climate Action and the Federal Ministry for Economic Cooperation and Development – emphasised the importance of production efficiency and low transportation costs, as well as the availability of economically viable renewable energy.
Well positioned to meet demand
“Provaris champions the development of regional hydrogen supply chains that prioritise both energy efficiency and robust economic returns,” Provaris Energy managing director and CEO Martin Carolan said.
“These independent publications serve as a formidable endorsement of our 2023 study's findings and will undoubtedly catalyse the acceptance of our delivery model for gaseous green hydrogen.
“The overall simplicity, transparency, and cost-competitiveness of compression as a means of transportation make it a persuasive choice for ports, pipelines, and end users alike.
“As we advance toward securing the final class approvals for our H2Neo carrier, Provaris' commitment to bulk-scale storage and transport through compression technology stands as an increasingly lower-risk endeavour.
“Our strategic focus within the European market has received a substantial boost from the EU Parliament from the Renewable Energy Directive.
“This directive mandates that by 2030, a substantial 42% of all hydrogen utilised by industry must be from renewable generation.”
Direct cost benefits
PV1 highlighted the cost difference between the company’s proposed distribution methods and those explored in recent research studies, outlining a cost range of EUR 4.90 to 5.90 per kilogram for its proposed grid-connected green hydrogen production sites along the coastal areas of Norway.
In comparison, the long-distance conversion, transportation to Germany, and subsequent reconversion for pipeline distribution can lead to substantially higher costs ranging from EUR 6 to 7 per kilogram for Ammonia (NH3), Liquefaction (LH2), and Methanol (MeOH), with an even more substantial EUR 7 to 9 per kilogram for liquid organic alternatives.
Overall, PV1 believes its current production plans capture an emerging European market, with an emphasis on renewable energy for green hydrogen generation, that may position the company as a pioneer and key player in the green hydrogen market in the region.