Australian Provaris Energy has been making progress in developing hydrogen supply chains and advancing the company’s proprietary hydrogen carrier.
During December 2024, Provaris made strides towards finalizing a term sheet with Uniper and Norwegian Hydrogen for a hydrogen sale and purchase agreement (SPA) outlining key commercial terms, including targeting a 10-year offtake for over 40,000 tonnes per annum of hydrogen from the Nordics to Germany. Execution is said to be imminent and expected to be executed after the European winter holiday period.
As disclosed, the term sheet represents a critical milestone in Provaris’ plans to establish a reliable, long-term and low-cost hydrogen supply utilizing its proprietary H2Neo carriers and H2Leo barge technology. Moreover, according to Provaris, it supports discussions established with shipyards for newbuilds and shipowners for the time charter of the carriers.
“Provaris and Uniper continue to focus on optimal shipping, compression, and import terminal solutions in North-West Europe, ensuring a flexible and efficient transport network. The collaboration with Norwegian Hydrogen, including the Fjord H2 project and other Nordic sites, aims to provide RFNBO-compliant hydrogen delivered in compressed form. These initiatives support Uniper’s hydrogen portfolio requirements and align with Provaris’ vision of delivering cost-effective, low-emission supply chains from production to end-user markets,” Provaris stated.
Regarding the ongoing sale process of the Fiska Facility and associated assets, Provaris revealed that progress has been achieved over the past six weeks with finalization and title transfer to the new owner anticipated on or around January 1, 2025.
Completion of the Fiska Facility sale is expected to enable Provaris to move forward with a lease agreement with the new owners and finalize the purchase of robotic laser welding requirement to restart its prototype tank fabrication and testing program.
“Securing a lease agreement for a portion of the Fiskå Facility’s production floor and associated office space will provide for a resumption of the Prototype Tank fabrication and testing program. The lease is close to finalization and will provide ample room for future growth, including the potential production of small-scale hydrogen storage tanks that can be an important step towards improving the operational economics for industrial hydrogen users,” Provaris said.
“Concurrently, Provaris has advanced negotiation of the key terms for an asset purchase agreement to acquire the installed Production Cell (including robotic arms, laser-hybrid welding equipment, pedestals, jigs and related tools) essential for the Prototype Tank construction. Owning these valuable production assets and associated intellectual property will strengthen Provaris’ manufacturing capabilities in Norway and potential licensing opportunities within Europe and Asia.”
As per Provaris, the Fiska site and production cell equipment provide a unique facility in Norway to support ongoing R&D efforts, including the co-development of a liquid CO2 tank program with Yinson Production . The company noted that applying lessons learned from the hydrogen program will accelerate the design and commercialization of alternative bulk-scale liquid CO2 tanks, suitable for barge storage and marine transportation.
To remind, in late 2024, Provaris secured A$1.5 million (around US$985,000) via a share placement to support its priority business developments related to hydrogen and CO2 projects in Europe. The funding, raised through a well-subscribed placement supported by existing and new institutional and corporate investors, will also be applied for Provaris’ future restart of its prototype tank program .