HIGHLIGHTS

  • Provaris's LCO2 tank achieves Concept Selection for LCO2 carriers and floating storage terminals, extending the addressable market beyond Yinson's FSIU application.
  • Stage 2 FEED activities for a 25,000 cbm LCO2 tank continue with Yinson under the Joint Development Agreement.
  • DNV engaged in parallel to progress General Approval for Ship Application (GASA) class certification.

 

Shares in Provaris Energy Ltd (ASX:PV1) climbed 11.11% to A$0.010 on Monday after the company announced that its proprietary liquefied CO2 (LCO2) tank design has achieved a Concept Selection milestone as part of the joint development program with Norwegian energy company Yinson Production. Critically, the Concept Selection is no longer limited to Yinson's original Floating Storage and Injection Unit (FSIU) application. The selected concept is now being evaluated across a broader suite of carbon capture and storage (CCS) infrastructure solutions, including dedicated LCO2 carriers for maritime transport and floating terminal requirements.

Concept Selection is a defined technical gateway in the engineering design process, signifying that the design team has identified and resolved key technical uncertainties and selected a preferred configuration for advancement into Front-End Engineering Design (FEED). Achieving this milestone is therefore commercially significant: it confirms that the Provaris tank design has cleared the first major technical hurdle on the path to commercialisation and positions it for consideration across a class of projects far larger than the single FSIU application with which the joint development agreement originally began.

The Carbon Capture and Storage Opportunity

The global CCS market represents a significant and growing infrastructure Investment theme, driven by net-zero commitments across governments, energy majors, and industrial emitters. Large-scale CCS projects typically involve capturing CO2 at the point of emission, conditioning and liquefying it, and then transporting and permanently injecting it into geological formations. The transport and intermediate storage components of this chain are currently served by conventional pressure vessel designs that Provaris believes are economically suboptimal at large scale.

Provaris argues that its Type C Equivalent tank design allows for the fabrication and installation of significantly larger tanks in carriers and barges compared with conventional market solutions, improving the transport and storage Economics on a per-tonne-of-CO2 basis. Yinson's Chief Technology Officer, Lars Gunnar Vogt, confirmed in the announcement that large-scale CO2 storage solutions designed along these lines have the potential to materially improve efficiency and reduce cost per tonne relative to existing market offerings.

FEED Progress and DNV Certification Pathway

Provaris and Yinson are currently advancing Stage 2 of the FEED process for a 25,000 cubic metre capacity LCO2 tank, targeting completion by mid-2026 under the Joint Development Agreement. In parallel, classification society DNV has been engaged to progress a General Approval for Ship Application (GASA) certification — a critical step that would allow the Provaris tank design to be specified into maritime projects globally. The GASA process runs in parallel with the FEED work, meaning both commercial and regulatory de-risking activities are being pursued simultaneously.

Provaris's Chief Technology Officer, Per Roed, noted in the announcement that the design and engineering validation work has confirmed the company can produce and operate the 25,000 LCO2 tank with an extremely low probability of structural failure or leakage, consistent with the requirements for a Type C tank under the IGC Code. He also highlighted progress on an automated production Facility design that is expected to offer cost and quality advantages over conventional fabrication processes.

Monetisation Framework and Commercial Outlook

The development pathway outlined by Provaris is structured around future licence fee monetisation, with Revenue expected to align with CCS project Financial Investment Decisions and execution timelines. This is a licensing-oriented commercial model rather than a Manufacturing one, which carries lower Capital requirements but means that meaningful cash flows depend on the pace at which CCS infrastructure projects progress to final investment decisions. The extension of the Concept Selection scope to include CO2 carriers and floating terminals significantly increases the number of future project opportunities against which Provaris can pitch its tank technology.