Provaris Energy and Yinson Production Partner to Develop CO2 Storage and Transport Solutions
PV1 (PV1) Share Update September 2024 Monday 30th
Provaris Energy and Yinson Production Announce CO2 Storage and Transport Collaboration
Provaris Energy Ltd and Yinson Production Offshore Pte Ltd have entered into a binding Joint Development Agreement to co-develop innovative solutions for the storage and marine transportation of carbon dioxide (CO2).
Instant Summary:
- Provaris Energy and Yinson Production to co-develop CO2 tank designs.
- Partnership to evaluate technical and economic viability of adapting Provaris' technology.
- Collaboration aims to support global emission goals through innovative CO2 storage and transport solutions.
Strategic Collaboration
Provaris Energy Ltd (ASX: PV1) and Yinson Production Offshore Pte Ltd have announced a binding Joint Development Agreement to develop storage tank solutions for the bulk storage and marine transportation of carbon dioxide (CO2). This collaboration will focus on adapting Provaris' proprietary tank design for compressed hydrogen to create innovative and cost-competitive alternatives for CO2 storage and transport.
The partnership will also explore the potential for other hydrogen derivatives, such as ammonia. By combining Yinson Production's expertise in floating production, storage, and offloading (FPSO) vessels with Provaris' experience in creating Class-level designs for bulk marine storage and transportation, the collaboration aims to develop scalable solutions for the carbon capture and sequestration sector.
Innovation in Storage
Currently, there is no ship transport of CO2 in a low-pressure and temperature range suitable for long sailing distances and large cargo volumes. This collaboration aims to address these limitations by developing a new CO2 tank design solution. The development of CO2 storage and transport infrastructure is crucial for the widespread deployment of carbon capture, which is essential for meeting global emission targets.
The design of the CO2 tanks will be critical for maximizing the amount of CO2 that can be stored and transported in a single cargo. Provaris' proprietary cargo containment system, which incorporates multiple carbon steel layers with an internal layer of stainless steel, will play a key role in this development.
Leadership Comments
Lars Gunnar Vogt, Yinson Production’s Chief Technical Officer, emphasized the importance of carbon capture and storage in achieving global emission targets. He stated, 'Our collaboration with Provaris Energy will leverage our combined expertise to develop cost-competitive and innovative solutions for CO2 storage and transportation.'
Martin Carolan, Provaris’ Managing Director and CEO, highlighted the significance of the partnership, saying, 'This opportunity allows Provaris to explore alternate pathways in the commercialization of its tank technology in partnership with an industry leader in the offshore industry.'
This collaboration is expected to have a positive impact on both companies. For Provaris Energy, it represents an opportunity to expand the application of its proprietary tank technology beyond hydrogen to CO2 and other hydrogen derivatives. For Yinson Production, the partnership aligns with its expansion into the carbon capture and sequestration sector, potentially enhancing its market position.
Investor Reaction:
Analysts are likely to view this partnership positively, as it combines the strengths of both companies to address a critical need in the carbon capture and storage market. The collaboration could lead to innovative solutions that support global emission reduction goals, which may attract investor interest.
Conclusion:
Investors should keep an eye on the progress of this collaboration, as the development of new CO2 storage and transport solutions could have significant implications for the carbon capture and sequestration market. This partnership represents a strategic move for both Provaris Energy and Yinson Production, potentially driving long-term growth and innovation.