Provaris Energy’s hydrogen tanker fabrication to recommence; shares up 6%

Fabrication of Provaris (ASX:PV1)‘s prototype hydrogen tanker is now to recommence in 2025, pushing shares in the microcap up 5.8% to 1.8cps.

The company has been working on a world-first hydrogen transport vessel for several years, slogging through COVID-19 and a severe hampering of momentum for the hydrogen market broadly.

But there were problems in recent history as the Norwegian firm making its tanker went bankrupt.

In June, Provaris acquired the firm to keep the in-house only team it had with what real-world manufacturing knowledge for the asset was thus established at that time. Six months on, it now looks like fabrication works are set to restart.

Provaris is targeting January for its purchase of “robotic laser-welding equipment” needed to restart the creation of the prototype tank used in the vessel that will, all cards in order, eventually store hydrogen.

The feat would not be without its technical challenges. One major reason hydrogen doesn’t really work as a perfect gas replacement is because the pipes that port natural gas – billions upon billions of dollars worth of infrastructure around the world – can’t port hydrogen.

Or, they can, but nobody would insure them; hydrogen causes embrittlement when ported through steel pipework which means they break quicker.

So, in other words, porting hydrogen gas through a modern natural gas processing facility would effectively destroy it. Or close enough in the eyes of insurers.

That is the reality of the world Provaris will find itself in once its hydrogen tanker is complete, should it be completed, and that will be a different problem. But for now, the company is pressing on with its world-first vision.

“The growing industry acceptance of Provaris’ H2 solution using compression as a viable alternative for low cost and efficient solution for bulk-scale transport underpins our confidence in delivering value to the European Market,” Provaris chief Martin Carolan said.

PV1 last traded at 1.8cps.

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