Provaris Faces Commercial and Certification Challenges Ahead of LCO2 Tank Rollout

Concept Selection Marks Major Technical and Commercial Progress

Provaris Energy Ltd (ASX:PV1) has reached a pivotal Concept Selection milestone for its proprietary liquefied CO2 (LCO2) tank design, developed jointly with Yinson Production. This milestone lifts the tank’s application beyond Yinson’s Floating Storage and Injection Unit (FSIU) to include evaluation for LCO2 carriers and floating terminal solutions, significantly broadening its commercial footprint across the carbon capture and storage (CCS) supply chain.

The achievement signals resolution of key technical uncertainties, effectively de-risking the technology and opening the door to front-end engineering design (FEED) studies and subsequent project execution phases. As Yinson’s Chief Technology Officer Lars Gunnar Vogt noted, the tank’s scalable design promises efficiency gains and cost reductions per tonne of CO2 stored and transported, a critical factor for large-scale CCS projects.

Expanding Market Reach Through Larger Tank Designs

Provaris’ LCO2 tank design stands out for enabling fabrication and installation of significantly larger tanks in carriers and barges compared to conventional solutions. This scale advantage is expected to improve transport and storage economics, a competitive edge as CCS infrastructure demands grow.

The joint development agreement with Yinson underpins ongoing FEED activities targeting mid-2026 completion for a 25,000 cubic metre capacity LCO2 tank. Parallel to this, Provaris has engaged DNV to pursue General Approval for Ship Application (GASA) classification, a crucial maritime certification validating the tank’s compliance with international standards.

These developments build on earlier progress, including the successful completion of the initial FEED phase and a manufacturing partnership with Himile Heavy Industries, which aims to establish automated, robotic production facilities to drive quality and cost efficiency. The staged testing and fabrication program at Provaris’ Norwegian facility further supports this technical advancement, reflecting a clear pathway to scalable commercialisation.

Commercial Strategy and Regional CCS Demand

Provaris and Yinson anticipate substantial growth in marine transport and offshore storage infrastructure to support Northern European CCS projects, particularly in Norway and the North Sea region, ahead of 2030. The ability to reduce unit costs for CO2 transport and storage is expected to be a decisive factor as projects approach final investment decisions.

The partnership’s commercial model envisages future licence fee revenues tied to CCS infrastructure development milestones, aligning technology monetisation with project execution timelines. This approach aims to capitalise on the expanding CCS market by providing a differentiated, cost-effective containment solution.

Provaris’ Chief Technology Officer, Per Roed, emphasised the tank design’s low risk of structural failure and leakage, meeting Type C tank standards under the IGC Code, and highlighted the benefits of automated production in reducing fabrication costs compared to traditional methods.

Next Steps and Development Timeline

Looking ahead, Provaris plans to complete FEED activities including detailed structural modelling and design documentation within the June quarter. Concurrently, component testing will continue at its robotic laser-welding facility in Norway, while efforts to secure GASA Class approval advance.

The integration of the LCO2 tank design into Yinson’s FSIU FEED program remains a priority, alongside ongoing development of carrier and terminal storage concepts. Additionally, Provaris is progressing the design of a full-scale production facility, estimating unit costs and delivery schedules as part of its memorandum of understanding with Himile.

This milestone and ongoing development efforts build on Provaris’ recent 25,000 cbm LCO2 tank FEED phase completion and the manufacturing partnership with Himile in China, underscoring a methodical approach to commercialising its CCS infrastructure technologies.