Provaris Energy Ltd (ASX:PV1) Signs Conditional Term Sheet with Uniper
Collaboration Overview
Provaris Energy Ltd (ASX:PV1) has signed a conditional Term Sheet with Uniper Global Commodities SE and Norwegian Hydrogen AS for hydrogen supply and offtake. This agreement lays the groundwork for negotiating a binding Hydrogen Sale and Purchase Agreement (SPA), which is anticipated to be completed by June 2025.
Supply Details
The Term Sheet specifies that Provaris will supply approximately 42,500 tonnes per year of RFNBO-certified hydrogen, to be delivered as compressed gaseous hydrogen using Provaris’ H2Neo carriers. Uniper will act as the buyer and manage the receiving terminal in North-Western Europe. The delivery of hydrogen is targeted to commence in early 2029, under a minimum ten-year term.
CEO Comments
Martin Carolan, Managing Director and CEO of Provaris, expressed his enthusiasm: “We are delighted to see the collaboration has progressed to a Term Sheet for hydrogen supply and offtake. This represents a key milestone for Provaris and validation towards developing regional bulk-scale hydrogen supply chains within Europe using Provaris’ H2Neo compressed hydrogen carriers.”
Future Directions
The collaborative effort seeks to streamline hydrogen supply chains in response to Europe’s 2030 decarbonisation goals. The agreement will enhance operational efficiency and lower costs, leveraging Provaris’ innovative transport concepts. The progression towards a binding SPA indicates substantial commitment from all parties involved to advance renewable energy solutions.
The Term Sheet remains conditional upon fulfilling the necessary approvals and finalising the binding Hydrogen SPA.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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