Provaris Energy Ltd (ASX:PV1, OTC:GBBLF) has begun a fully funded front-end engineering design (FEED) program for its proprietary large-scale low-pressure liquid carbon dioxide (LCO₂) tank, marking a key step towards commercialisation and positioning the company for growing opportunities in the carbon capture and storage (CCS) sector.
Development partner Yinson Production AS (Yinson) will fund 100% of the FEED phase under the parties’ existing joint development agreement, covering four major engineering and integration packages for use in Yinson’s planned Floating Storage Injection Unit (FSIU) for offshore LCO₂ injection.
The first deliverables are due in December 2025, with completion targeted for mid-2026 alongside Class design approval.
Joint venture on track for 2026
The FEED program will take Provaris’ concept design through structural engineering, hull integration and compliance with maritime codes, optimising the design for steel weight and robotic fabrication. Experimental test sections will be produced at Provaris’ robotic facility in Norway and assessed as part of the program.
Provaris and Yinson plan to form a joint venture company in 2026 to hold equal ownership and licensing rights to the tank’s design and fabrication intellectual property, enabling commercial deployment across marine and onshore applications.
“This Yinson-funded FEED launch is a pivotal moment for Provaris, moving us from concept towards commercial readiness with the backing of a global leader in offshore production,” said managing director and CEO Martin Carolan.
“Shipping is a crucial component of the CCS value chain, and our recent roadshow in Asia, which included meetings with major ship owners, has provided valuable insights for our assessment of the potential for the LCO₂ tank to be suitable to meet the growth in demand for specialised larger-capacity low-pressure LCO₂ shipping, aligned with industry forecasts of significant growth in CCS as a key lever in reducing carbon emissions globally.”
Asian market demand
Provaris’ recent Asian roadshow, conducted with adviser Clarksons, included meetings with K-Line and other major shipowners. Feedback confirmed a preference for large-scale LCO₂ tanks in the range of 40,000 to 50,000 cubic metres — a size aligned with Provaris’ concept and offering fewer, larger tanks to improve hull utilisation and reduce freight costs.
Market engagement also identified potential for the tank design in emerging European and Asian CCS projects, reinforcing the company’s first-mover advantage in scalable low-pressure LCO₂ shipping.
Addressing cost and scale barriers
LCO₂ is typically transported using Type C tanks with limited capacity, constraining efficiency and increasing costs. Provaris’ design applies a layered construction of thinner plates made from standard carbon steel, enabling larger capacities without resorting to expensive high-yield materials.
The approach reduces steel thickness challenges, lowers construction costs and improves hull utilisation. Robotic automation and laser welding further cut manufacturing costs and enhance precision.
By increasing cargo volume capacity and reducing the number of tanks required, the design aims to lower both capital and operating expenditure for LCO₂ carriers.
Dual-market technology
While the FEED program focuses on Yinson’s FSIU project, Provaris says the technology also de-risks its compressed hydrogen tank designs, providing a platform for multiple applications in the energy transition.
Chief technical officer Per Roed said the program is key to validating the company’s design and “moving towards a market-ready solution”.
“There is growing interest from the maritime industry in our layered plate, robotic fabrication and laser welding technology to unlock the limitations of traditional Type C tank design,” he said. “We are building not just a tank for Yinson’s LCO₂ project, but a platform for multiple applications, including compressed hydrogen.
“The data and experience gained through Yinson’s program will strengthen our ability to deliver Class-approved, large-scale storage solutions required to establish large-scale shipping and storage for carbon capture supply chains globally.”