Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) has moved to secure a new pathway for its hydrogen Prototype Tank construction and testing, undertaking proactive measures and strategic planning to restart the program as soon as possible.
PV1’s intervention became necessary after the unexpected bankruptcy process of appointed sub-contractor Prodtex Industri AS.
Prodtex Industri AS is a subsidiary of Provaris’ collaboration partner, Norwegian-based Prodtex AS, which is not included in the bankruptcy process and, as far as PV1 is aware, remains solvent.
Prodtex Industri was operating the Fiska facility and is responsible for constructing the Prototype Tank, required for Final Class Approvals from DNV for Provaris’ proprietary H2Neo carrier.
Steps taken to mitigate impact
The company says it is currently unclear what impact the bankruptcy will have on the Prototype Tank Contract but expects delays at the least.
The bankruptcy will halt all engineering and construction activities of Prodtex Industri – Provaris believes it is likely to result in senior secured lenders of Prodtex Industri, including Innovation Norway, taking control of Prodtex Industri’s facilities and equipment.
The company says it has scheduled a meeting with Innovation Norway this week to discuss alternative pathways for reopening the Fiska facility.
PV1’s primary goal is to have construction on the prototype tank resume as soon as possible to minimise the overall impact of the bankruptcy.
The company’s management will seek to work closely with Prodtex to develop an alternate plan to continue work on the Prototype Tank, with more announcements to follow any agreements.
Based on discussions to date, Provaris is confident a solution can be reached to keep tank testing on track to be complete in 2024, which would not materially affect ongoing commercialisation activities.