Provaris Energy Ltd (ASX:PV1, OTC:GBBLF, FRA:WS90) made further technical and commercial progress across its compressed hydrogen and liquid carbon dioxide storage technologies during the June 2026 quarter, completing a major engineering milestone and broadening the potential market for its large-scale LCO₂ tank design.
The company completed the structural engineering package for its proprietary 25,000-cubic-metre LCO₂ tank on schedule and within budget, submitting the design to maritime classification society DNV for review.
Provaris also expanded the scope of its joint development agreement with Yinson Production AS, strengthened hydrogen shipping cooperation with Kawasaki Kisen Kaisha Ltd, known as "K" LINE, and raised $1 million to support its remaining 2026 technical programs.
Yinson partnership expands LCO₂ opportunity
The YP-Provaris LCO₂ tank was selected during the quarter as the reference containment solution for Yinson's planned floating storage and injection unit developments.
Its potential applications have since been expanded to include LCO₂ carriers and floating storage terminals, materially widening the addressable market across the carbon capture and storage supply chain.
With a capacity of 25,000 cubic metres, the tank is around four times larger than existing Type-C tanks and uses a proprietary sandwich-type structure engineered in accordance with the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk.
The larger design could improve storage efficiency and reduce the cost per tonne of transported CO₂ for large-scale CCS developments.
Yinson has funded the front-end engineering and design program, investing more than $2 million across 2025 and 2026. The partners are also preparing preliminary agreements for a proposed joint venture company that would hold ownership and commercialisation rights to the technology.
Potential applications for LNG, ammonia and other liquid gases are also under consideration.
Design moves towards class approval
The completed engineering package has been submitted to DNV as Provaris works towards Approval in Principle and, ultimately, General Approval for Ship Application.
DNV's design review is targeted for completion in August 2026.
A material and welding test program is planned for the September quarter to validate the structural model's strength and fatigue calculations. Testing will be undertaken at Provaris' Robotics Innovation Centre in Fiska, Norway, and specialist facilities in Germany and Sweden.
Provaris is also working with Yinson and Himile Heavy Equipment on the industrialisation of the tank design at Himile's manufacturing facility in Rushan, China.
That work includes planning for a highly automated production facility, assessing required factory upgrades and preparing preliminary fabrication costs and delivery schedules.
Hydrogen prototype approaches testing
Fabrication of Provaris' compressed hydrogen prototype tank continued at the Fiska facility during the quarter.
One cylinder and the first of two endcaps were substantially complete at quarter-end, with fabrication scheduled to restart in August following Norway's summer vacation period.
Completion is targeted during the September quarter, after which the tank is expected to move into testing and verification.
The prototype program is central to securing final marine classification approvals for the company's H2Neo™ compressed hydrogen carrier design.
Provaris said the robotic and laser-welding expertise developed through the program was also supporting its LCO₂ manufacturing studies and broader objective of establishing scalable, low-cost fabrication methods.
Commercial hydrogen partnerships progress
Provaris continued to develop regional hydrogen shipping opportunities with "K" LINE during the quarter.
A second delegation from the Japanese shipping group visited Oslo and the Fiska prototype facility, while Provaris management also participated in meetings in Tokyo.
Discussions covered supply chain economics, vessel construction, ownership structures and engagement with prospective hydrogen producers and buyers.
Provaris also signed a cooperation agreement with "K" LINE and Norwegian Hydrogen AS to develop a commercial shipping solution for the proposed FjordH2 export project at Ørskog in Norway.
Further discussions were held with Nordic hydrogen producers and German import stakeholders on regional supply chains supported by Provaris' H2Neo™ carriers.
Key milestones ahead
Provaris expects the remainder of 2026 to focus on completing technical approvals and transitioning its technologies towards commercialisation.
Priorities include completing DNV's review of the LCO₂ tank, undertaking material and welding tests, finalising commercialisation arrangements with Yinson and completing fabrication and testing of the hydrogen prototype.
The company also plans to progress vessel construction discussions with "K" LINE, shipbroking group Clarksons and prospective shipyards, while pursuing commercial hydrogen shipping agreements in the Nordic region.
Provaris completed a $1 million placement during the quarter to support these programs and ended June with approximately $1.05 million in cash.
The company reported net operating cash outflows of $732,000 for the quarter and said it continued to assess strategic partner funding, shareholder support and non-dilutive funding alternatives.
