January 07, 2025 [Storage Terminals Magazine]- Provaris Energy Ltd has announced a significant advancement in its collaboration with Uniper Global Commodities SE and Norwegian Hydrogen AS. The partnership has reached the execution of a conditional Term Sheet for the supply, transport, and offtake of RFNBO-compliant hydrogen. This term sheet sets the stage for negotiating a binding Hydrogen Sale and Purchase Agreement (Hydrogen SPA), targeted for completion in June 2025.
This milestone builds upon the Memorandum of Understanding announced in August 2024 and facilitates continued cooperation in developing hydrogen supply chains. These chains will leverage Provaris’ compressed hydrogen carriers to transport hydrogen from Norway and other Nordic sites to import locations in Northwestern Europe.
Key Perspectives from the Collaboration Partners
Martin Carolan, managing director and CEO of Provaris, highlighted the importance of the development:
“We are delighted to see the collaboration progress to a Term Sheet for hydrogen supply and offtake. This represents a key milestone for Provaris and validation towards developing regional bulk-scale hydrogen supply chains within Europe using Provaris’ H2Neo compressed hydrogen carriers.”
Norwegian Hydrogen’s CEO, Jens Berge, expressed enthusiasm for the collaboration:
“We’re very excited about this tri-party collaboration, and it’s rewarding for all three parties to see our efforts progress into increasingly concrete and advanced stages.”
Benedikt Messner, senior vice president, New Energies Origination at Uniper Global Commodities SE, emphasised the potential of the transport concept:
“We think that the innovative transport concept by Provaris might be a solution to connect commercially interesting hydrogen supply locations with our core markets and look forward to the continuation of our collaboration.”
Efficient and Cost-Effective Hydrogen Supply Chain
Analysis by the partners underscores the efficiency of transporting hydrogen directly, rather than its derivatives. By sourcing hydrogen regionally from the Nordics and transporting it through Provaris’ compressed hydrogen carriers, the supply chain can minimise losses from production to distribution. This approach reduces energy consumption, enabling more renewable energy to be allocated to hydrogen production and increasing the volume of hydrogen delivered to European markets.
Hydrogen Supply Chain Development
Provaris and Norwegian Hydrogen are advancing the development of RFNBO-compliant hydrogen production, storage, and transport solutions. Preferred sites under consideration include locations in Norway and Finland, with the FjordH2 Project in the Alesund region of Norway undergoing detailed feasibility studies.
Provaris’ proprietary solutions for hydrogen storage and shipping will feature one H2Leo barge at the production site, with a capacity of 450 tonnes of compressed hydrogen at 250 barg, and two H2Neo hydrogen carriers, each with a similar capacity. Both the H2Neo and H2Leo are progressing toward final class approvals, anticipated in the first half of 2025.
Uniper will lead the selection and development of the import terminal, working with Provaris to optimise storage infrastructure and connections to the European Hydrogen Backbone for distribution to industrial sectors. The simplicity and flexibility of the port infrastructure design allow for the nomination of multiple entry ports, further enhancing the adaptability of the supply chain.
The Term Sheet remains conditional on the negotiation and execution of a fully termed Hydrogen SPA, as well as obtaining necessary approvals. This collaboration demonstrates a shared commitment to advancing hydrogen supply chains, reducing emissions, and supporting Europe’s transition to sustainable energy solutions.
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