Provaris Energy Ltd (ASX:PV1, OTC:GBBLF, FRA:WS90) has strengthened plans for a compressed hydrogen export supply chain from Norway to Northern Europe after signing a co-operation agreement with Kawasaki Kisen Kaisha Ltd, known as “K” Line, and Norwegian Hydrogen.
Provaris has entered a co-operation agreement with shipping group “K” Line and Norwegian Hydrogen AS to advance a commercial hydrogen shipping solution for the FjordH2 Export Project at Ørskog in Norway.
The agreement will support development of a supply chain to move compressed hydrogen from Norway to buyers in Northern Europe using Provaris’ H2Neo™ carriers and H2Leo™ barge.
Norwegian Hydrogen is the sole developer of FjordH2, which is proposed to produce up to 40,000 tonnes per annum of hydrogen for export. The project has secured land, advanced permitting and completed feasibility work to demonstrate its technical and economic viability as an export compressed hydrogen site.
Partnership focus
The co-operation will focus on maturing shipping costs, fleet management planning and draft terms for long-term charter agreements.
The work will draw on “K” Line’s shipping experience in the region, including LNG carrier operations from the Snøhvit LNG project and LCO₂ carrier operations for Northern Lights’ carbon capture and storage project.
The partners will also assess financing alternatives and ownership structures for the hydrogen carriers and barge.
Provaris managing director and CEO Martin Carolan said the agreement brought together hydrogen production, marine transport and European market access capabilities.
"We are delighted to bring together the complementary capabilities across hydrogen production, marine transport and European market access to progress a viable supply chain for renewable hydrogen from Norway to North-West Europe. By combining Norwegian Hydrogen’s project development with 'K' Line’s shipping expertise and Provaris’ compressed hydrogen transport solution, we are focused on maturing a scalable, cost-competitive pathway that aligns with Europe’s demand for pipeline-ready RFNBO-compliant hydrogen.”
“K” Line corporate officer Kei Onishi said the company aimed to support the development of a hydrogen supply chain for Northern Europe by applying its operational experience.
Norwegian Hydrogen CEO Jens Berge described the addition of “K” Line as a positive milestone that strengthened the project and the broader value chain.
"Our large-scale site at Ørskog where we are developing the Fjord H2 project together with Provaris and other partners is in continuous positive development, with more and more pieces coming together. Getting global major 'K' Line onboard as the shipping partner is a great positive milestone which strengthens the project and the entire value chain even further,” Berge said.
What's next
Provaris is developing compressed hydrogen and carbon dioxide storage and transport solutions using proprietary tank designs for maritime gas carriers and integrated supply chain development.
We spoke with Carolan recently about the company's European hydrogen push:
Next steps under the agreement include refining the shipping cost model, developing a fleet management plan, preparing draft charter terms and assessing financing and ownership options for the proposed hydrogen transport assets.