A new research report from Longspur Research on Provaris Energy Ltd (ASX:PV1, OTC:GBBLF), following the release of its Q4 quarterly activities report, recognises the progress made by the company as it works to develop a portfolio of integrated green hydrogen projects.
Longspur analyst Adam Forsyth notes that the quarterly report caps off a busy period for the company, which has made progress on project development and carrier design, while also shoring up its financial position.
The company raised A$1.9 million during the quarter, which saw it end with a A$2.5 million cash balance at December 31.
This, says Forsyth, leaves Provaris “well placed to continue with the design of their innovative carrier and storage tanks and progress their partnership projects at FjordH2 and Afjord in Norway over the coming year”.
Projects progress
The report highlights that the company’s Norwegian projects remain its primary focus, with the successful completion of all planned project activities at the FjordH2 development, along with the extension of Provaris’s collaboration with Norwegian Hydrogen for another six months to June 2024.
The report also notes the studies continue at the Afjord project, as Provaris looks to achieve the milestones set out in the initial collaboration, including technical and safety reviews and economic modelling, with a final study report due for completion in the current quarter.
As for Provaris’s Tiwi project in Northern Australia, the report highlights that discussions are ongoing with the Tiwi Land Council and Tiwi Plantation Corporation, although the Project Agreements that were submitted last year are likely to depend on the Tiwi Land Council elections that will be held later this month.
Storage tank development
The Provaris prototype tank remains on track for construction by Prodtex in Norway in the current quarter with testing and approvals due to conclude in the June quarter. Successful completion could see the development of small-scale standalone tanks in late 2024, following a number of enquiries from potential customers.
Studies support compressed hydrogen solution
The Longspur report acknowledged the compressed hydrogen solution, saying “We have also seen further confirmation of the underlying economics of the Provaris compressed hydrogen solution for transportation.”
A report last year from the Scottish Government and consultants ClimateXChange and ARUP, showed that shipping compressed hydrogen could be the most competitive option, particularly for smaller scale production and shorter distances. That added to independent work from the EU Joint Research Council, Agora and Fraunhofer ISE that confirmed compressed hydrogen shipping as a cost competitive option.
