Energy companies Provaris Energy, Uniper Global Commodities and Norwegian Hydrogen have signed a conditional term sheet for the supply, transport and offtake of hydrogen from Nordics to North-Western Europe. This provides the basis for negotiating a binding hydrogen sale and purchase agreement (SPA) targeted for June 2025.
As disclosed, an annual volume of 42,500 tonnes per year of RFNBO-certified hydrogen is set to be delivered as gaseous compressed hydrogen using Provaris’ H2Neo carriers. RFNBO – renewable fuel of non-biological origin – means that the fuel was produced via an electrolysis process, using renewable electricity to split water into hydrogen and oxygen.
Uniper will be the buyer of hydrogen at an agreed fixed price and the responsible party for the receiving terminal in North-Western Europe for delivery. Commencement of cargo deliveries is targeted for early 2029, for a minimum term of 10 years.
According to Provaris, the execution of the term sheet presents a milestone under the memorandum of understanding (MoU), announced in August 2024, and facilitates ongoing cooperation on developing hydrogen supply chains from Norway and other potential Nordic sites to import locations in NorthWestern Europe.
To remind, Provaris and Norwegian Hydrogen are collaborating on the development of the supply of RFNBO-compliant hydrogen, which will be stored and transported using Provaris’ H2Neo carriers. Work is said to be underway to outline the preferred sites in the Nordics, including Norway and Finland.
Based on the proposed hydrogen volumes and shipping distance, the supply chain’s storage and shipping infrastructure using Provaris’ proprietary shipping solutions will include H2Leo barge storage at the production site, with a capacity of 450 tonnes of compressed hydrogen at 250 barg pressure, and H2Neo hydrogen carriers with an individual storage capacity of 450 tonnes of compressed hydrogen at 250 barg pressure.
Uniper will be responsible for the selection and development of the import terminal and is working with Provaris to outline the capital and operating equipment to discharge the H2Neo carriers, which includes an assessment of optimal storage and connection to the European Hydrogen Backbone for distribution to industrial sectors.
Martin Carolan, Provaris’ Managing Director and CEO, stated: “We are delighted to see the collaboration has progressed to a Term Sheet for hydrogen supply and offtake. This represents a key milestone for Provaris and validation towards developing regional bulk-scale hydrogen supply chains within Europe using Provaris’ H2Neo compressed hydrogen carriers.”
Jens Berge, Norwegian Hydrogen’s CEO, added: “We’re very excited about this tri-party collaboration, and it’s rewarding for all three parties to see our efforts progress into increasingly concrete and advanced stages.”
Benedikt Messner, Senior Vice President – New Energies Origination, Uniper Global Commodities, commented: “We think that the innovative transport concept by Provaris might be a solution to connect commercially interesting hydrogen supply locations with our core markets and look forward to the continuation of our collaboration.”
To note, the term sheet remains conditional upon, among others, the negotiation and execution of a fully termed hydrogen SPA and obtaining all necessary approvals.