ASX-listed hydrogen play announces new global partnership

Thu 12 Jan 23, 1:16pm (AEST)
Two individuals walk alongside one another while the EU flag is superimposed over the right half of the image
Source: iStock

Key Points

  • Norwegian Hydrogen is backed by Japan’s Mitsui & Co as well as other European engineering heavyweights
  • Provaris believes its compressed hydrogen tankers offer the lowest-cost option for the Nordic company to export H2 to Rotterdam and Germany
  • The two companies are to publish a study identifying proposed production and export facilities in Q1 of 2023

ASX-listed hydrogen player Provaris (ASX: PV1), the company building a series of world-first compressed hydrogen tankers approved by the peak US maritime regulator, executed a non-binding memorandum of understanding (MOU) with Norwegian Hydrogen on Thursday. 

Provaris shares were up 15% to 5.1c in the second hour of afternoon trade.

As the name suggests, Norwegian Hydrogen is registered in Norway and focuses on whole-of-supply-chain engineering and development for hydrogen energy, including transport and industrial. 

It is backed by Japanese engineering giant Mitsui & Co, as well as similar European companies. 

“Provaris is delighted to collaborate with Norwegian Hydrogen to accelerate our development ambitions of an integrated export hydrogen project,” Provaris chief executive officer Martin Carolan said. 

“The Nordic region will benefit from the simplicity and efficiency of compressed hydrogen [exported by] marine carrier.”

Government strategies 

For an overview on Green Hydrogen and its role in decarbonisation, you can read Market Index’s explainer here

Under an European initiative dubbed REpowerEU, 10 million tonnes per annum of hydrogen will need to be imported  each year from 2030. 

The Norwegian government has already formalised a joint statement with the EU in which Norwegian Hydrogen is set to benefit. 

The implication is clear: the Nordic energy giant  could use Provaris’s ships to get it there (think Rotterdam Port). Germany is also slated to be a key export destination. 

Collaboration is the name of the game 

The two companies are formulating a design concept study (DCS) which is due to be completed in the first quarter. That study will identify the preferred locations of production and export terminals. 

Provaris is seeking opportunities to work with Norwegian Hydrogen, which intends to produce hydrogen in the future, using its own hydrogen tankers. 

Once its compressed hydrogen tankers are built, Provaris calculates it will be able to offer a highly competitive logistics option for the transport of hydrogen gas to international buyers, as well as European countries with port terminals built to handle hydrogen. 

“The Nordic region offers several advantages that can include low-cost hydro power, proximity to offtake markets and supportive governments committed to supplying hydrogen to Europe,” Carolan explained.

Norwegian Hydrogen chief Jens Berge also  sees strong potential. 

“The vast experience and diverse capabilities within the combined Provaris and Norwegian Hydrogen team, along with a huge demand for green hydrogen in the EU, makes this a great opportunity for both parties,” Berge added. 

A look at Provaris's six month charts
A look at Provaris's six month charts


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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