The MoU of Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) with German energy major Uniper brings a strong downstream partnership to complement the progress the company has made upstream, reveals Longspur Research.
According to the analyst, the MoU builds access into the key German market as regulation across the EU looks likely to build demand for green hydrogen.
The companies have entered into a non-binding 12-month memorandum of understanding (MoU) and will work together to qualify the technical, operational and economic benefits of the solution.
This will include Provaris’ H2Neo compressed hydrogen carrier as well as its integration into a compressed hydrogen supply chain.
MoU highlights
The MoU builds on Provaris’ existing relationships including upstream with Norwegian Hydrogen and Gen2 Energy.
This agreement adds to the downstream picture where the company has already been in discussions with a number of potential off-takers and users of its compressed hydrogen solutions.
Building a hydrogen train requires work at either end of the system and we see this as important in completing the picture in Europe.
With the EU Fit for 55 package now targeting 42% of industrial hydrogen to be from green sources by 2030, this is an important market for Provaris.