Investor Insight

Provaris presents a unique and attractive investment opportunity given its leading role in developing innovative storage and transport infrastructure essential to lower the cost of hydrogen and CO2 supply chains. With its proprietary technology, strategic partnerships and integrated business model, Provaris is well-positioned to capitalize on the growing demand for clean energy solutions.

Company Highlights

• Proprietary tank IP, fabrication and ship designs provide unique advantages to unlocking economic storage and transport.
• Studies demonstrate compression provides the lowest cost for regional hydrogen supply.
• Advancing term sheets into binding agreements in 2025 for hydrogen supply to German utilities.
• Simple ‘Capital lite’ model to provide early cash flow from license fees, recurring revenue and remove capex
• Expanding tank IP and new license fees with Yinson Production AS to innovate liquid CO2 tank and vessels and a second source for license fee income.
• Growth opportunities from pipeline of supply projects and new markets for gas and liquid storage tank solutions

Overview

Provaris (ASX:PV1), offers innovative storage and transport infrastructure essential to lower the cost of hydrogen and CO2 supply chains. With an office established in Oslo, Norway, to support the focus on Europe, the company has developed a shipping solution for ‘Ready to Use’ hydrogen, which provides flexible and stable supply for buyers at the lowest regional delivery cost. The advantages of compressed hydrogen are now recognized through multiple industrial partners for supply and offtake, including a maiden term sheet for offtake with Germany’s Uniper Global Commodities.

The implementation of a ‘capital lite’ model through technology license fees enables Provaris to support a portfolio of supply projects to deliver early cash flow and long-term recurring revenue without large-scale capex. Illustrative fees for each supply chain project are material to support substantial returns to investors over time.

Provaris stands at the forefront of the green hydrogen economy being developed, dedicated to innovative and efficient supply chains for zero-carbon energy in the European region. With its rapid adoption of green hydrogen, the European market needs 7 Mt of low carbon H2 imports by 2030 with less than <1 percent produced today. As countries across the continent seek to decarbonize their economies, the demand for sustainable supply of hydrogen molecules remains in deficit for decades to come. Provaris’ compressed gas solution delivers the fastest, lowest cost route to closing this gap.

Compression supports the development of simple, scalable and energy-efficient green hydrogen supply chains for the European market. By focusing on a regional supply model, the Provaris solution delivers 50 percent more hydrogen from supply sights in the Nordics at a 20 percent lower cost.

Supply Chain Project Pipeline in Europe

Provaris is progressing a two hydrogen supply chain project in the Nordics, which include a German utility for offtake. Additional opportunities under review:

> Norway: Working with developers on hydrogen export infrastructure

> Spain: Assessing sites for export and supply chain integration.

> Finland: Identification of suitable sites for bulk-scale hydrogen export infrastructure.

Multiple projects will further diversify Provaris’ revenue potential and position the company as a key enabler of Europe’s hydrogen transition.

Key Features and Benefits of Compressed Hydrogen

• Enhanced Safety: Provaris’ compressed hydrogen technology prioritizes safety in storage and transportation.
• Cost-effectiveness: By eliminating the need for complex liquefaction or ammonia synthesis processes, the company's solutions reduce overall costs.
• Scalability: The technology is adaptable to various project sizes, from regional supply chains to large-scale international exports.
• Environmental Sustainability: Compressed green hydrogen aligns with global efforts to reduce carbon emissions and transition to cleaner energy sources.

Recent Concept Design Study reaffirms simplicity and efficiency of compressed hydrogen enables low-cost supply for Europe.

Innovative Hydrogen Vessel Designs: H2Neo Carrier and H2Leo Barge for export efficiency

Complementing its innovative compressed hydrogen technology, Provaris is in the final stages of developing new vessel designs specifically for hydrogen transport. These specialized vessels are engineered to safely and efficiently carry compressed hydrogen across maritime routes, opening up new possibilities for international green energy trade.

At the heart of Provaris’ innovative H2Neo carrier solution is its proprietary compressed hydrogen technology. The H2Neo offers a more efficient and cost-effective alternative to traditional methods of hydrogen storage and transport. These carriers are designed to address the growing global demand for hydrogen while overcoming the logistical challenges associated with green hydrogen distribution.

Strategic Partnerships using Provaris solutions for hydrogen

At the forefront of Provaris Energy's European strategy is a groundbreaking Memorandum of Understanding (MoU) with Norwegian Hydrogen and Germany-based international energy company Uniper Global Commodities. This tripartite agreement marks a pivotal step in developing hydrogen supply chains, leveraging each partner's unique strengths.

The collaboration strategically capitalizes on the Nordic region's geographical advantages, facilitating efficient hydrogen distribution across Europe, with a particular focus on the German market. Germany is reliant on the import of over 70 percent of its hydrogen demand by 2030. In January 2025, a breakthrough term sheet was announced for the supply, shipping and offtake of 42,500 tonnes per annum of hydrogen, with the target for converting to a binding Hydrogen SPA during 2025.

A second MOU collaboration is also underway replicating this success with a new hydrogen supply project and German utility. Further details are to be announced during 2Q 2025.

In The Netherlands, Provaris is collaborating with Global Energy Storage (GES) to develop a bulk-scale hydrogen import facility within Rotterdam’s global energy hub. The agreement involves the completion of a comprehensive prefeasibility study to demonstrate the technical and economic viability of berthing and unloading of Provaris’ H2Neo compressed hydrogen carriers. Provaris will be responsible for the transportation of the hydrogen in the H2Neo carriers and GES will be responsible for the discharge and injection into the hydrogen grid.

Innovating CO2 Storage and Transport

As part of its commitment to sustainable energy solutions, Provaris is expanding its portfolio to include CO₂ storage. This strategic move commenced with a ground-breaking partnership with Norway’s Yinson Production AS to bring innovation to liquid CO₂ storage and transport, for both maritime and onshore applications. Yinson is a USD 3 billion global energy infrastructure leader in FPSOs and renewable technologies, having raised USD 1.6 B in late-2024 for growth funding, including the establishment of CO₂ supply chains.

In 2024, a Joint Development Agreement (JDA) was announced to develop new bulk liquid CO₂ tank designs for floating, onshore, and ship-based storage applications, solving an industry bottleneck for CO₂ tank capacity limited to ~7,500 cbm. Targeting major gains in storage volume and reduced storage costs, tank designs at low pressure and temperature maximise storage and efficiency to reduce storage and transport costs.

CO2 offers Provaris growth in License Fees

Aligned with its technology license model for hydrogen, Yinson is funding Provaris’ development of new tank designs to be jointly owned and then licensed to owners of floating storage, shipping, and land-based storage solutions, which will include Yinson.

In March 2025 confirmation of an early milestone was achieved with a Concept Design for a new CO2 Tank design completed, with the next milestone set for June 2025. Development fees have included a USD 200,000 Technology License Fee paid under the JDA, with ongoing fees to be received in 2025.

Management Team

Martin Carolan – Managing Director & CEO

Greg Martin – Chairman

Andrew Pickering – Non-executive Director

David Palmer – Non-executive Director

Per Roed – Chief Technical Officer

Mats Fagerberg – Business Development, Europe

Garry Triglavcanin – Product Development Director

Norman Marshall – Group Commercial Manager

John Stevenson – Group Financial Controller

Jessica Roed – Operations Manager, Norway