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- Provaris Energy (ASX:PV1) looks set to build a world-first hydrogen tanker
- The company is engaging safety entity DNV for approval of engineering specs
- DNV will produce a FEED Statement
- It will cover Provaris’ ‘H2Neo’ carrier design and prototype tank
- The tank will be tested throughout Q1 CY24
- ESG stocks are tipped by UBS to come back into the fold this year post-COP28
- Shares in PV1 last traded at 4.7 cents
Provaris Energy (ASX:PV1) is aiming to receive approvals for its ‘H2Neo’ world-first hydrogen shipping tanker in the coming months.
Engaging standards classification body DNV, the company is looking at getting approvals for its novel ship design.
For ultimate clarity: we’re talking about a ship that transports hydrogen, as opposed to running on it.
One hydrogen ship already services Australia, the Susio Frontier, the subject of a safety incident following a fire in 2022.
Prototype Tank key to full approval
A large part of the design to be focused on is the company’s “proprietary Prototype Tank”. A first will be produced and tested by Q2 CY24.
In the background, Provaris reports it’s developing a possible road to early revenues, building small-scale tanks, by the end of this year. One is left to deduce that will depend on how Q1 CY24 testing goes.
Once testing wraps up, however – and assuming all goes to plan – the company will have secured “all necessary design and technology … approvals” to commit to shipbuilding the hydrogen tanker H2Neo design.
Conviction in hydrogen market
How exactly the hydrogen market will go in 2024 remains to be seen, but analysis from UBS suggesting a bounceback in interest for ESG stocks could act as a tailwind.
Hydrogen was one of the hottest themes in 2022, to such an extent Global X launched a hydrogen ETF.
To date, that is yet to return to its float price. Provaris management, however, seems bullish.
“We continue to see an increasing demand for safe and cost-effective solutions to store and transport gaseous compressed hydrogen,” Provaris Chief Technical Executive Officer Per Roed said.
“To be able to validate our proprietary solution through Prototype testing can be a game changer to unlocking a significant market opportunity.”
A DNV executive called the economic transport of hydrogen a “linchpin” for the global energy transition.
Who is DNV anyway?
DNV is a global provider servicing new and well-established ship builds for offshore use – a classification rating from DNV would basically be an authoritative testament to the viability of the H2Neo.
But this wouldn’t be the first entity in the classifications and ratings space to award the tanker a greenlight.
The American Bureau of Shipping (ABS) ticked off on the H2Neo design back in December of 2022. Provaris was once named Global Energy Ventures.
Shares last traded at 4.7 cents.
