Provaris Energy reports significant progress on Tiwi H2 and HyEnergy green hydrogen projects

Provaris Energy (ASX: PV1) has reported significant progress on its Northern Territory-based green hydrogen export project during the September quarter, with the delivery of a positive design concept study for Tiwi H2 and advancement of a partnership over the HyEnergy development.

The concept study was completed in August after more than six months of work to position the flagship Tiwi H2 as the leading project of its kind in the region.

It confirmed the feasibility for an integrated 100,000 tonnes per annum compressed hydrogen production and export project, focusing on the technical parameters and estimated capital costs.

It also supported the merits of compression and the utilisation of Provaris’ proprietary H2Neo carriers in transporting compressed hydrogen to energy markets in South East Asia.

Importantly, the concept study established a clear pathway for the company to progress to pre-FEED (front-end engineering and design) and FEED-level technical, commercial and economic studies and the consideration of potential financing options.

First hydrogen production and export is targeted for 2027, with an assumed 30-year project life.

HyEnergy update

In September, Provaris signed an agreement with HyEnergy project partner Total Eren to further the development of a green hydrogen strategy targeting Asia and Europe where the application of Provaris’ compressed H2 storage and transport supply chain can be applied.

It marked the culmination of a 12-month technical and commercial analysis of the compressed H2 carrier supply chain and included solutions to meet the requirements of offtakers, port authorities, shipyards and ship operators.

It also provided Provaris with a key partner to facilitate and accelerate the delivery of the first H2Neo fleet.

Total Eren is a project partner in the HyEnergy project which will see the export of 200,000t per annum of compressed hydrogen to markets in Asia.

H2Neo contract design package

Provaris reported that a detailed contract design package (CDP) had been completed for the H2Neo during the quarter and engineering design documentation provided to the American Bureau of Shipping (ABS) for final review.

ABS is now progressing a final FEED-level review of the H2Neo design and has confirmed it is on schedule to issue an approval letter by December.

A major Asian shipbuilder continued its review of the CDP during the period, confirming its ability to construct the H2Neo and its interest in preparing a quote for the build.

Cash balance

Provaris had a cash balance of $9.7 million at the end of the quarter.

Cash expenditure was $1.8 million and included corporate costs, project expenses for Tiwi H2 and HyEnergy studies, and the completion of the H2Neo FEED-level design package work.

The aggregate amount for payments to related parties and their associates for the quarter was $418,000, comprising fees, salaries and superannuation paid to directors and executive directors.