Provaris to Deliver 42,500 Tonnes of Green Hydrogen Annually Starting 2029

A Breakthrough in European Hydrogen Supply

Provaris Energy Ltd (ASX: PV1) has marked a significant milestone in its development journey with the execution of a term sheet with Uniper Global Commodities SE and Norwegian Hydrogen. This agreement outlines the supply and offtake of 42,500 tonnes per annum of green hydrogen, transported using Provaris' proprietary H2Neo compressed hydrogen carriers. Scheduled to commence deliveries as early as 2029, this deal is set to establish Europe's first large-scale regional hydrogen marine transport project, underpinning a decade-long partnership.

The term sheet, announced in early January 2025, is a critical validation of Provaris' innovative approach to hydrogen transport and supply chain economics. It also sets the stage for negotiating a binding Hydrogen Sale and Purchase Agreement targeted for mid-2025. The collaboration with Uniper and Norwegian Hydrogen focuses on RFNBO-compliant hydrogen sourced from Nordic regions, including Norway and Finland, with the FjordH2 project near Ålesund being a key feasibility site.

Meeting and Exceeding EU Emissions Standards

Provaris has demonstrated compliance with the European Union's Renewable Energy Directive II (RED II) emissions standards for bulk hydrogen shipping. Independent analysis supported by Wärtsilä confirms that Provaris' H2Neo carriers achieve a carbon intensity of 7.6 g CO2e/MJ H2, well below the 28.2 g CO2e/MJ H2 threshold required for RED II compliance. This achievement not only satisfies regulatory requirements but also strengthens Provaris' competitive positioning as a low-emission hydrogen transport solution.

Strategic Expansion into CO2 Storage and Transport

In parallel with hydrogen developments, Provaris has embarked on an innovative project to design large-capacity liquid CO2 storage tanks in partnership with Yinson Production AS, a leader in floating production and storage vessels. The joint development agreement focuses on creating cost-effective, bulk-scale CO2 storage and marine transport solutions that exceed current industry standards. The concept design phase has progressed significantly, including material selection and structural modeling, with Yinson providing USD 200,000 in technology service fees to support the project.

This diversification into CO2 infrastructure leverages Provaris' proprietary tank IP and robotic welding capabilities, potentially opening a new commercial pathway in the growing carbon capture and storage market, estimated at USD 4 billion in 2024.

Advancing Infrastructure and Market Readiness

Provaris is also advancing the development of a hydrogen import facility at the Port of Rotterdam in collaboration with Global Energy Storage (GES). The conceptual design targets an initial 40,000 tonnes per annum import capacity, including hydrogen storage options and integration with the Netherlands' hydrogen network. Engagements with port authorities and pipeline operators in Germany and the Netherlands continue, aligning with broader European infrastructure rollouts such as Germany's €19 billion Core Hydrogen Network.

These infrastructure developments are critical to supporting the anticipated scale-up of hydrogen imports required to meet Europe's decarbonization goals and industrial demand.

Financial Position and Outlook

Provaris closed the quarter with a cash balance of AUD 1.4 million and net operating costs of AUD 0.3 million, consistent with its budget. The company retains access to a $3 million convertible bond facility with Macquarie Bank, of which $2.5 million remains undrawn, providing financial flexibility to support ongoing development activities. Recent capital raising efforts have attracted institutional support, including from Regal Funds Management.

Looking ahead, Provaris plans to finalize agreements to restart its prototype tank production facility in Norway, further underpinning its manufacturing capabilities for hydrogen and CO2 tank technologies.