Provaris Energy Ltd (ASX:PV1) has received design approval for its 26,000-cubic-metre H2Neo compressed hydrogen (H2) carrier from the American Bureau of Shipping (ABS), which reviewed, verified and approved the H2Neo design.
This marks another critical milestone for Provaris, achieved with extensive front-end engineering design (FEED) work and ABS review activities.
Shipbuilders can now provide firm quotations for the construction of a fleet of H2Neo carriers and PV1’s focus now shifts to selecting a suitable shipyard, with world-leading ship broker Clarksons engaged to conclude a global shipyard identification and selection process in early 2023.
Shares higher
Investors have responded positively, sending shares as much as 13.73% higher intra-day to $0.058.
“The success of our FEED design stage and corresponding approval milestone is the result of extensive design and engineering works by Provaris’ team of discipline experts and consultants that have actively contributed to the development of Provaris’ innovative H2Neo hydrogen carrier,” Provaris Energy's chief technical officer Per Roed said.
“Through our close collaboration with ABS throughout this three-year process, we are confident that our compressed hydrogen carriers can safely and effectively establish the maritime transportation of hydrogen at a time when storage and transport remain key to unlocking markets with ambitions for hydrogen imports at scale from 2026.”
Illustration of Provaris’ proprietary compressed H2 cargo tank.
Safe, economic, energy-efficient H2 shipping
Provaris will now advance development of its larger, 120,000-cubic-metre H2Max carrier barges, confident in its design approach following approval from the ABS.
The company has so far maintained first-mover status for compressed hydrogen, underscored by this most recent approval, and is seeking to execute shipbuilding contracts in late 2023 for the H2Neo carriers and 2026 for the large-scale vessels.
“Compressed H2 can deliver a safe, economic and energy-efficient hydrogen shipping and transport solution that is essential to meet the climate targets for 2030 and beyond,” Provaris Energy managing director and CEO Martin Carolan said.
“Provaris has set itself ambitious targets for the detailed engineering and approvals required to develop the H2Neo carrier, and I am pleased to say our team has delivered on time and under budget a unique approach to marine hydrogen transport that is also a world first.
“Our marketing program over 2022 continues to raise the awareness of compressed H2 as a first mover and feasible alternative for regional hydrogen trades.
“We expect this approval milestone to assist with the validation requirements in our commercialisation pipeline, transition Provaris to construction award status in 2023, and de-risk the development and approvals pathway for our large-scale H2Max carrier and our design for hydrogen storage barges.”