Provaris Energy inks MoU with Norwegian Hydrogen to develop local value chains
Provaris Energy Ltd has made inroads into Europe's hydrogen market after signing a Memorandum of Understanding (MoU) with Norwegian Hydrogen AS to collaborate on the identification and development of green hydrogen value chains within the Nordic region.
Norwegian Hydrogen is a green hydrogen developer focused on supplying the Nordic region of Europe within a range of sectors, including the transportation, maritime and industrial markets.
The company is owned by Flakk Group, Mitsui & Co Ltd, Hexagon Purus, Hofseth International and Tafjord, all international firms with an industrial focus.
The agreement between Provaris and Norwegian Hydrogen will involve the collaborative development of green hydrogen export chains, using PV1’s GH1 carriers and storage solutions, and Norwegian Hydrogen’s proposed hydrogen production and export sites in the region.
Partnership offers multiple advantages
“Provaris is delighted to collaborate with Norwegian Hydrogen to accelerate our development ambitions of an integrated export hydrogen project from the Nordic region that will benefit from the simplicity and efficiency of compressed hydrogen as a marine carrier,” Provaris Energy managing director and CEO Martin Carolan said.
“The Nordic region offers several advantages that can include low-cost hydropower, proximity to offtake markets and supportive governments committed to supplying hydrogen to Europe.
“This collaboration also has strategic alignment with the development timeline of our H2Neo carrier and validation of the increasing interest for our compressed H2 transport solution for hydrogen supply into Europe.”
Specifically, the MoU will provide a framework for the two companies to jointly undertake a concept design study that will:
- Review identified sites and select a preferred location suitable for domestic and export volumes of hydrogen.
- Undertake a technical and economic review for the production and supply of compressed gaseous green hydrogen to nominated European ports.
Nordic region provides strategic advantage to key H2 markets in Europe.
Cost competitive
Provaris and Norwegian Hydrogen will focus on identified sites for green hydrogen export, with a short sailing distance to some of the major planned hydrogen import hubs in Netherlands and Germany.
This includes sites in Norway, where the government recently announced its agreement with German counterparts for the export of hydrogen.
Potential import hubs in the United Kingdom could have equivalent and advantageous proximity to source location(s).
At these short distances, Provaris’ proprietary compressed hydrogen H2Neo carrier has demonstrated to be very cost competitive compared to alternative transportation, storage and conversion vectors of hydrogen.
The scope of the MoU will focus on the development of the full value chain, including production, maritime transportation and distribution to off-takers.
Illustration of a Provaris’ H2Neo Carrier and conceptual Compressed H2 Floating Storage solution suitable for export and import use cases.
"A great opportunity"
Norwegian Hydrogen Jens Berge CEO commented: “We are excited to work with Provaris on a solution which will bring green hydrogen to the EU market in a flexible, cost-effective and timely manner.
“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.”
Norway represents 50% of the hydropower reservoir capacity of the EU and is consequently key in reaching the REPowerEU ambition of 10 million tonnes per annum hydrogen import by 2030.
Furthermore, Norway is committed to be a long-term hydrogen supplier to Europe as confirmed in the Joint Statement of the German and Norwegian governments on increasing maturity of the hydrogen value chain.
A joint Design Concept Study will be completed in the March quarter of 2023 to identify a preferred production and export site and determine the technical and economic viability of a fast-track green hydrogen supply chain connected to the key ports in Germany and the Netherlands.
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