Provaris Energy has received firm commitments to raise $1.9 million from a share placement to existing and new investors to fund the construction and testing of the hydrogen prototype tank in Norway.
According to Provaris, the placement will comprise the issue of 47.5 million new fully paid ordinary shares at an issue price of $0.04 per share.
The proceeds of the placement will provide funds for the hydrogen prototype tank construction and testing program in Norway, scheduled to commence in January 2024, along with development activities on existing hydrogen collaboration projects in Norway and corporate costs.
Provaris kicked off the program in July 2023 and hired Prodtex AS to construct and test a prototype hydrogen tank. The contract involves a comprehensive program with detailed production design, fatigue tests of multilayered welded steel plates, and construction and rigorous testing of the prototype tanks.
Prodtex recently completed the design for a multi-layered carbon-steel prototype tank.
The testing of the prototype, which will be performed by SINTEF, aims to secure final class approvals for Provaris’ proprietary 26,000 cubic meter H2Neo hydrogen carrier for which the company obtained design approval from American Bureau of Shipping (ABS) at the end of 2022.
Provaris Managing Director and CEO, Martin Carolan , said: “The Company is delighted with the strong participation from existing and new institutional and professional investors in the placement. The funds will continue to mature our platform of projects and focus on the development of hydrogen supply chains in Europe, including the construction and testing of a hydrogen prototype tank in Norway in the first quarter 2024. The successful testing of this prototype aims to secure Final Class Approvals, marking a substantial de-risking milestone for the readiness of Provaris’ shipping and storage solutions.
“The increasing attention and strategic focus on compression positions Provaris as a key player in delivering low-cost gaseous green hydrogen, crucial for meeting Europe’s ambitious goal of relying on 10 million tons per annum of imported volume by 2030.”