Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) is making rapid progress in its hydrogen supply chain initiatives, focusing on Norway’s role as a key hub in Europe, with a key 10-year offtake deal in the works.
The company is close to sealing the deal on a term sheet for hydrogen supply and the restart of its prototype tank program.
“We are encouraged by the significant progress made across our priority initiatives in Norway,” managing director and CEO Martin Carolan said.
“The imminent finalisation of the Hydrogen SPA Term Sheet with Uniper and Norwegian Hydrogen marks a key validation step for our business model, our technology and for compressed hydrogen transportation.”
Long-term hydrogen supply
Provaris, in collaboration with Uniper and Norwegian Hydrogen, is finalising a term sheet for a 10-year offtake deal that provides for the supply of over 40,000 tonnes of renewable green hydrogen annually from Nordic production sites to Germany.
The term sheet is a critical milestone for Provaris’ hydrogen ambitions, using its proprietary H2Neo carriers and H2Leo barge technology.
The agreement also facilitates discussions with shipyards for new builds and shipowners for time charters.
Despite some delays due to the European winter holiday period, the execution of the term sheet is expected shortly after 2 January 2025.
In partnership with Norwegian Hydrogen, Provaris is working on projects such as Fjord H2, which will deliver compressed hydrogen meeting Renewable Fuels of Non-Biological Origin (RFNBO) standards.
These efforts dovetail Uniper’s hydrogen portfolio needs with Provaris’ vision for efficient, low-cost and low-emission supply chains.
Prototype tank program resumes
Provaris has secured a lease agreement for space at the Fiskå Facility in Norway, allowing the resumption of its prototype hydrogen tank fabrication and testing program.
Final approvals for the facility's title transfer to a new owner are expected by early January 2025.
The lease supports future growth, including potential production of small-scale hydrogen storage tanks to enhance operational efficiency for industrial hydrogen users.
Provaris is negotiating terms for an asset purchase agreement to acquire advanced production equipment – including robotic arms, laser-hybrid welding equipment, pedestals, jigs and related tools – at the Fiskå Facility, to bolster its manufacturing capabilities.
The company hopes to leverage its hydrogen expertise to co-develop a liquid CO2 tank program with Yinson Production AS.
These tanks are designed for barge storage and low-emissions marine transport.
“We are pleased with the positive developments around the Fiskå Facility and the future restart of our Prototype Tank program, which will be instrumental in achieving H2Neo carrier Class Approvals,” Carolan said.
Low-cost and efficient solution
“The growing industry acceptance of Provaris’ H2 solution using compression as a viable alternative for low cost and efficient solution for bulk-scale transport underpins our confidence in delivering value to the European market.
“We continue to advance a dialogue with regional hydrogen supply projects under development to assess the merits and selection of Provaris as an alternative export carrier.
“The board also wishes to thank shareholders for their ongoing support after a challenging six months.
“With additional interest and momentum building we look forward to entering 2025 on a strong footing, supported by our expanding network of partners, suppliers and customers.
“Provaris success in Europe will serve as a platform for a value creating period in the year ahead.”