Provaris Energy Concept Design Study Announcement

Provaris Energy Ltd (ASX:PV1) has completed its Concept Design Study for bulk-scale hydrogen export and import compression facilities, reaffirming the low energy use and low capital of its compressed hydrogen supply chain for regional marine transport of hydrogen in gaseous form. The Study, based on a 540MW capacity reservation export site, produced 10 tonnes of hydrogen per hour, with an intra-Europe shipping distance of 1,000 nautical miles using the H2Neo carrier to deliver gaseous hydrogen to the customer at 70 barg.

Executive Commentary on Concept Design Study

The Concept Design Study reconfirmed the superior energy efficiency and low capital cost associated with compression for marine transportation of hydrogen. It is pleasing to receive detailed costings and equipment selection from the Compressor OEM, supporting our development case in Europe. This Study has increased our confidence and understanding that many regional-European sites with a material level of renewable power reservation can significantly benefit from compression, when compared to the alternative of converting hydrogen into ammonia for marine transport. The benefits of compression include delivering more hydrogen in volume, using less capex, and boosting the financial returns to the producer whilst maintaining a highly competitive delivered cost to the customer.

Summary of Concept Design Study Outcomes

The Concept Design Study reaffirmed the low energy use and low capital cost of Provaris' compressed hydrogen supply chain for regional marine transport of hydrogen in gaseous form. The Study demonstrated that compression has up to 5 times less energy use than required for ammonia synthesis, resulting in 50% greater hydrogen volumes delivered to the customer when compared to ammonia supply. The superior capital and energy efficiency of compression could result in a ~20% lower delivered price compared to regional supply ammonia post cracking back to hydrogen. Provaris is now using the Study as a basis to develop site-specific compression facilities for export and import terminals, aiming to capitalize on the competitiveness of compression in the European hydrogen market.