Provaris Energy (ASX:PV1) Secures Breakthrough Hydrogen Term Sheet with Uniper
Breakthrough Hydrogen Term Sheet
Provaris Energy Ltd (ASX:PV1) has executed a Term Sheet with Uniper and Norwegian Hydrogen, outlining the delivery of 42,500 tonnes per year of green hydrogen. The hydrogen will be transported via Provaris’ proprietary H2Neo compressed hydrogen carriers. Deliveries are expected to commence in early 2029 and will extend for a minimum of ten years, marking Europe’s first large-scale regional hydrogen marine transport project. This Term Sheet serves as the foundation for negotiating a binding Hydrogen Sale and Purchase Agreement targeted for June 2025.
Regulatory Compliance and Supply Chain Developments
Provaris demonstrated compliance with Europe’s Renewable Energy Directive II (RED II) emissions standards for bulk hydrogen shipping using the H2Neo carrier on a round-trip between Norway and Germany. Additionally, the company advanced the conceptual design of a 40,000 tpa compressed hydrogen import project in Rotterdam in collaboration with Global Energy Storage (GES). Provaris continues to explore supply chain opportunities in Europe to deliver hydrogen more cost-effectively compared to alternatives like ammonia.
CO₂ Tank Design Collaboration
Provaris commenced an innovative CO₂ tank design with Yinson Production AS for bulk storage and shipping. The collaboration has progressed through the Concept Design phase, including material selection and the development of a Structural Design Model. Provaris received a USD 200,000 payment from Yinson for Technology Service Fees related to this project.
Financial Update
As of December 31, 2024, Provaris reported a cash balance of AUD 1.4 million, with net operating costs aligning with the planned budget. The company secured a $3 million convertible bond facility, with AUD 2.5 million remaining undrawn. Additionally, Provaris completed a successful share placement supported by institutional investors, including Regal Funds Management.
Executive Comments
Martin Carolan, Managing Director and CEO of Provaris, stated, “The execution of a Term Sheet for hydrogen supply and offtake with Uniper is a breakthrough commercial milestone for Provaris, validating our focus on Europe to be the first regional market for bulk supply and recognising the benefits of our approach and delivered cost advantage in scaling hydrogen supply using compression. We have seen this milestone catalyse several discussions with stakeholders and industry partners on other supply chain proposals and an overall increase in activity going into 2025. The diversification into the CO₂ supply chain is now underway with the support and collaboration of a strong partner in Yinson, a leader in the offshore industry. Progress is being made on an innovative CO₂ tank that could be a game-changer for the industry, which is advanced with transport infrastructure but still requires cost and transport efficiency to economically scale-up.”
Motley Fool contributor Lianne Eastty 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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