Provaris Energy hits ‘significant milestone’ with completion of concept design study for Tiwi H2
Global Energy Ventures will focus on environmental permitting as it will likely drive the overall timing of the NT project.
Provaris Energy’s (ASX: PV1) Tiwi H2 green hydrogen production and export project has hit another milestone with the completion of a concept design study.
The company plans to export 100,000 tonnes per annum of green hydrogen from Tiwi H2, which is located on the Tiwi Islands in the Northern Territory.
According to Provaris, the study confirms Tiwi H2 is technically feasibility for an integrated compressed hydrogen production and export operation.
The study establishes a “clear pathway” to advance the project through all work streams including permitting, front end engineering design (FEED), technical, commercial, economic and financing options.
It also reinforced several outcomes from Provaris’ compressed hydrogen chain scoping study.
First hydrogen is targeted for early 2027 and the project has an estimated 30-year life.
Provaris managing director and chief executive officer Martin Carolan said completing the concept design study was a “significant milestone” for the company.
“Completion of the study enables Provaris to enter informed discussions with interested third parties about hydrogen offtake and development alternatives, including investment in or ownership of the upstream generation and hydrogen production or investment at the overall project level.”
Tiwi Island location
The Tiwi Island location was selected for its proximity to key South East Asian export markets.
Situated on Australia’s most north-western region on Melville Island, the project is less than 1,000 nautical miles from Indonesia.
It is around 1,800nm from Singapore and less than 3,000nm from South Korea and Japan.
Another critical factor in selecting the site is it’s a region of high solar intensity, which is required for the proposed solar precinct, which would be built on existing land that has been previously cleared.
There is also access to sea water and a port for exports.
Other key outcomes of concept design study
The concept design study assumes a capital cost range between US$4.5 billion and US$5.2 billion – with 70% of this being non-compression related.
A key factor in the capital cost estimate is Provaris’ proprietary compressed hydrogen shipping fleet. The first H2Neo carrier is under development, with the contract design package 90% complete.
Provaris anticipates the project would offset about 900,000t a year of carbon dioxide emissions.
The company is now advancing a partner process with interested groups across investment, offtake, construction and operational support.
“The combination of low environmental impact, port infrastructure, proximity to market, and compression provides Provaris and the Tiwi H2 project with a potential first-mover advantage in the region, by targeting first exports in 2027, and has the potential to be Australia’s first export project of gaseous green hydrogen,” Provaris executive director and chief development officer Garry Triglavcanin explained.
Green hydrogen has been designated critical to fill the energy gap in the world’s transition to net zero.