Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) continues to make progress on its prototype hydrogen tank restart program at the Fiskå Facility, Norway, with the company submitting an offer to acquire the installed prototype tank “production cell”.
Provaris has maintained regular dialogue with the secured lender’s appointed advisor since the end of the Norwegian summer holidays, in early August 2024, regarding the sale and future use of the Fiskå Facility (land and building), which houses the prototype tank and its associated production equipment.
Provaris has now submitted a conditional offer to purchase the production cell assets, including essential materials and robotic and laser welding equipment needed to complete construction of the prototype tank.
By acquiring the assets, Provaris would have full control over the robotics and laser-hybrid equipment, protecting the company’s investments made to date and securing the future of the prototype tank program. It also allows Provaris to consider additional tank production opportunities at the Fiskå Facility.
Provaris has now been informed by the secured lenders’ advisor that the secured lenders intend to sell all Prodtex Industri AS assets as soon as practical.
This decision follows the bankruptcy, earlier this year, of Prodtex Industri AS, which had been contracted to design, construct and test Provaris' hydrogen Prototype Tank.
“Protecting our investment”
Provaris managing director and CEO Martin Carolan said: “The board understands the concerns around protecting our investment in the prototype tank program.
"With this recent progress we have increased certainty that our investment remains secure, and we believe that acquiring full control of the Production Cell, including all robotic laser equipment, will be invaluable as we advance the program and explore future tank production opportunities where we have seen demand for similar scale tanks.
“There is also growing regional interest in compression for hydrogen storage and transport. Provaris remains well-positioned to capitalise on these market trends. The company's recent updates on term sheets for hydrogen supply, offtake, and shipping highlight the ongoing progress in its commercial activities.”
Additionally, the company said, “Provaris will keep shareholders informed as the purchase process progresses and the restart timetable is confirmed. The company remains committed to securing value from the investment already made in the program and looks forward to sharing further developments in due course.”
Provaris Energy is an Australian public company developing integrated green hydrogen projects for the regional trade of Asia and Europe.
The company focuses on innovative compressed hydrogen bulk storage and carriers, aiming to establish an early-mover advantage in regional maritime hydrogen trade.
Provaris Norway AS was established in August 2022 to advance hydrogen supply development in Europe.