Provaris finalizes $3 million standby funding facility for hydrogen development plans

Australian developer of green hydrogen projects Provaris Energy has secured a two-year $3 million standby facility with Macquarie Bank to provide a funding alternative for the hydrogen development plans in 2024/25.

Illustration of the H2Leo floating storage integrated with H2Neo 430t carrier for loading/unloading; Courtesy of Provaris Energy

On May 3, Provaris said it had finalized the $3 million convertible bond facility with Macquarie Bank to be issued in multiple tranches.

The facility provides the company with up to $3 million of standby capital over the next two years, providing flexibility to pursue its capital-raising endeavors in tandem with the progression of its hydrogen development projects and the commercialization of its intellectual property (IP) and hydrogen supply chain solutions.

A first tranche of a $500,000 convertible bond has been executed as part of the facility agreements, with a two-year term to maturity.

The issuance of further tranches remains at the discretion of Provaris and Macquarie, ensuring strategic alignment with the company’s evolving financial requirements, the Australian company explained.

Martin Carolan, Provaris Managing Director and CEO, commented: “This standby facility with Macquarie increases the flexibility of future funding alternatives available to our various projects and development activities which are aligned with the achievement of further commercial and technical milestones ahead for 2024.

The Facility also complements today’s announcement of a Share Purchase Plan offer to eligible shareholders and strengthens the Company’s financial position and aligns with our development program funding requirements over time. Activities which include collaboration for hydrogen production, final class approvals for shipping, joint development of an import terminal, activities related to MOUs with utilities in Germany, and an exciting venture to produce small-scale tanks for sale which could position the Company to have a commercial product in 2024. “

In one of the recent hydrogen endeavors, Provaris Energy entered a new collaboration agreement with Norwegian Hydrogen to jointly progress the identification and development of several sites in the Nordic region for the large-scale production and export of hydrogen to European markets.

At the beginning of April 2024, the Australian company agreed with Global Energy Storage (GES) to develop a gaseous hydrogen import facility at the GES terminal in the Rotterdam port.

The company also officially commenced the fabrication of the world’s first prototype scale compressed hydrogen tank, the H2Neo, signaling that the program is on schedule for completion by mid-2024.