Provaris Faces Funding Uncertainty as Losses Mount and Projects Scale Up

Financial Performance and Losses

Provaris Energy Ltd has reported a net loss of $2.09 million for the half-year ended 31 December 2025, marking a 59% increase compared to the $1.31 million loss in the same period last year. The widening loss reflects increased project development costs, particularly related to the company’s hydrogen and liquid CO2 (LCO2) tank initiatives, alongside reduced Australian R&D grant income and higher share-based payments.

Despite the loss, the company’s cash position improved to $545,093 at period end, up from $330,828 six months earlier, supported by multiple capital raisings totaling over $3.5 million. However, Provaris cautions that it faces a material uncertainty regarding its ability to continue as a going concern without securing additional funding beyond mid-2027.

Operational Progress in Hydrogen and Carbon Capture

During the half-year, Provaris made steady headway in developing its proprietary hydrogen storage and shipping technologies. The Robotics and Innovation Centre in Norway resumed fabrication of the H2 prototype tank, with testing scheduled for early 2026 to support maritime Class approval of the H2Neo carrier. This is a critical step toward commercial hydrogen shipping services anticipated to launch in 2026.

On the carbon capture front, the company advanced its joint development agreement with Yinson Production AS for next-generation large-scale LCO2 tanks. Phase 1 of the Front End Engineering Design (FEED) program was completed on time and within budget, with Phase 2 underway and targeted for completion by June 2026. The collaboration aims to deliver tanks with 3-4 times the capacity of existing designs, promising lower capital and operating costs for CO2 transport and storage vessels.

Strategic Partnerships and Market Positioning

Provaris continues to strengthen its position within Nordic and European hydrogen supply chains. The company renewed its collaboration agreement with Norwegian Hydrogen AS for the FjordH2 export project and extended a term sheet with Uniper Global Commodities, supporting ongoing commercial readiness for compressed hydrogen exports. Engagements with German and Northern European stakeholders are refining import requirements for future hydrogen shipping.

Additionally, Provaris signed a memorandum of understanding with Himile Heavy Equipment Co. Ltd in China to assess fabrication capabilities, potentially expanding its manufacturing footprint. The company is also developing a joint venture with Yinson to commercialise LCO2 storage and transport solutions globally, with incorporation planned following successful FEED completion.

Capital Management and Outlook

Provaris completed several placements during the period, including a $1.08 million raise in July, $1 million in August, and $500,000 in December, with directors participating in some raises. The company also maintains a convertible bond facility with Macquarie Bank Ltd, with $2.5 million still available for drawdown.

Looking ahead, Provaris aims to finalise hydrogen prototype tank testing and Class approval, progress commercial frameworks for hydrogen shipping, advance Nordic hydrogen projects, and complete FEED Phase 2 for the LCO2 tank. These initiatives position the company to capitalise on growing demand for cost-effective hydrogen and carbon capture supply chains critical to Europe’s decarbonisation goals.