Provaris Energy Raises $1.08m via Placement to Advance Unique Gas Compression Technology

Hydrogen and carbon dioxide storage technology specialist Provaris Energy (ASX: PV1) has raised $1.08 million to support its continued expansion into Europe.

The raising received strong institutional, sophisticated, and professional investor support with 83 million new fully paid ordinary shares to be issued at $0.013 per share, and included strong participation from Provaris directors.

The transaction will settle in a single tranche with the new shares, which will rank equally with the company’s existing fully paid ordinary shares, to be issued sometime in early July.

Shipping and Storage Solutions

Chief executive officer Martin Carolan said Provaris would apply the proceeds from the raising toward advancing the company’s priority hydrogen and carbon dioxide storage and marine transportation business development activities in Europe, including its proprietary hydrogen prototype tank program in Norway.

“Provaris is pleased to welcome new shareholders who have supported this capital raising and we thank our existing holders for their continued confidence,” Mr Carolan said.

“We are also encouraged by progress in completing the liquid CO2 tank design phase funded through our joint development agreement with Yinson Production.”

“The new tank design will address market demand for specialised maritime and offshore storage solutions, supporting large-scale carbon capture and storage to comply with Europe’s increasing regulations on industrial supply chains.”

K Line Agreement

Provaris executed a memorandum of understanding in late June with global shipping leader Kawasaki Kisen Kaisha (‘K’ LINE), a deal the company sees as a significant step toward the commercialisation of its shipping and offshore storage solutions, specifically its H2Neo carrier and H2Leo barge.

“The funds raised will support ongoing H2Neo technical milestones in parallel with our partnership with ‘K’ LINE to support the commercialisation of Provaris’ hydrogen carriers for cost-effective storage and marine transport solutions for hydrogen in Europe,” Mr Carolan said.

Analysts have forecast that Europe will require 7 million tonnes of low-carbon hydrogen, with Germany planning to import up to 70 per cent of its supply.