Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) has taken strong steps over the last three months toward establishing a commercial hydrogen supply chain in Europe and certifying its H2Neo carrier design for bulk-scale marine hydrogen transport.
Prototype tank fabrication for the H2Neo carrier continued through the quarter in Norway until the unexpected bankruptcy of PV1’s subcontractor, prompting the company to consider alternate options including but not limited to acquiring the fabrication facility directly.
The company also advanced MoU discussions with three German utility companies with a focus on matching early hydrogen demand requirements for industrial users.
"Commercial progress"
“The June quarter highlights that we continue to demonstrate our commercial progress with partners for European supply chains,” Provaris Energy managing director and CEO Martin Carolan said.
“The increasing awareness and commercial support for Provaris comes at a favourable time, as the EU continues to direct efforts and finances to lead the charge on low-carbon hydrogen supply.
“Continued growth in the region delineates the effectiveness of our strategy to direct all our efforts within the region, capitalising on our first mover advantage.”
H2NEO advances
Fabrication work completed earlier in the quarter on the H2NEO prototype tank provided PV1 with confidence that its 3D models and detailed design can be effectively translated into automated robotic handling and laser welding of the first half of the proprietary hydrogen prototype tank.
The company is now in dialogue with the fabrication facility’s secured lenders, considering alternatives for the resumption of activities and completion of the prototype tank.
PV1 is considering acquiring the facility including all material, plant and equipment. The company is also considering suitable partners and is in discussions to create a subsidiary that would restart the prototype tank fabrication as soon as possible.
Completing testing and obtaining a Class Approval for the H2NEO would be a world-first achievement in bulk-scale marine hydrogen transportation, in turn assuring first-mover status for Provaris.
That milestone would also open new options for revenue, through the production and sale of smaller-scale hydrogen storage tanks to Norwegian and EU-based industrial users of hydrogen.
PV1 has already identified an early pipeline of opportunities in maritime and industrial storage applications.
Supply chain progress
Discussions and workshops with PV1’s three German utility companies under MoUs have focused on technical, operational and economic aspects of compression, as well as potential hydrogen supply sources in the Nordics and Iberia that can match the early hydrogen demand requirements of industrial users.
Provaris made a site visit in May to Global Energy Storage (GES), with a focus on developing a compressed hydrogen import facility at GES’s terminal site in the Port of Rotterdam, Netherlands, with indicative support for the location drummed up through joint marketing meetings at the World Hydrogen Summit.
A team including Proavris management, directors, advisors, shareholders and analysts also made two site visits to the Fiska fabrication facility in Norway and Norwegian Hydrogen’s 3MW Hellesylt Hydrogen Hub, which is now in production.
Provaris has extended its collaboration agreement with Norwegian Hydrogen, adding Finland to the export locations being evaluated based on feasibility work completed earlier in the year.
Finally, PV1 has been advancing technical and commercial due diligence activities for potential new collaboration partners to establish hydrogen supply based on compression.
The company is assessing new sites for compressed hydrogen production and export, as well as partners, import terminal alternatives, and preferred offtake partners.
With $1 million in the bank from a recent share purchase plan, and a $3 million strategic convertible bond standby facility secured with Macquarie Bank, PV1 is confident in its ability to complete its certification, commercial and infrastructure goals and secure first-mover status in compressed hydrogen shipping.