Home Offshore Energy Provaris advances Tiwi H2 project with completion of a Concept Design Study

Provaris advances Tiwi H2 project with completion of a Concept Design Study


Provaris Energy announced the completion of a Concept Design Study for its proposed Tiwi H2 project on the Tiwi Islands (the Tiwi H2 project), Northern Territory, with targeted export volumes of 100,000 tonnes per annum of green hydrogen, beginning 2027.

Completion of the positive Tiwi H2 Project Concept Design Study (Study) establishes a clear pathway for Provaris to progress the project forward to Pre-FEED and FEED level technical, commercial, and economic studies and consideration of potential financing options. The Study reinforced several observations and outcomes from the 2021 Compressed Hydrogen Chain Scoping Study undertaken by Provaris.

Study highlights for the Tiwi H2 project include:

  • Confirmation that the Tiwi H2 project is technically feasible for an integrated compressed hydrogen production and export project and utilises proven technologies.
  • First hydrogen production and export targeted for 2027, for an assumed 30-year project life.
  • Total project capital cost estimate during construction is expected to be in the range of USD $4.5 to $5.2 billion, with ~70% of the project capital cost being non-compression related.
  • Solar intensity on Tiwi is competitive to produce green hydrogen.
  • Load following reduced additional requirement for battery and hydrogen storage.
  • Compression required only 1.0 kWh per kg, this represents only a 2.0% loss in hydrogen for export.
  • Desalination had a minor impact on the cost of hydrogen with <1% in terms of capex, opex and energy use or a 0.2% loss in hydrogen for export.
  • Small footprint of <2 ha required for compression facilities.
  • Proximity to markets benefited the delivered cost with respect to South-East Asian energy markets.
  • Existing port and land access to save development time and capital.
  • The Tiwi H2 project will utilise a fleet of Provaris’ proprietary H2Neo GH2 carriers for distribution into South-East Asian energy markets, with the engineering and final Class approvals on track for 2023.
  • Identification of social and economic benefits to the Munupi landowners and the broader Northern Territory economy, with the potential to generate ~500 construction jobs and ~100 operational roles.
  • 100,000 tpa of green hydrogen export could offset ~900,000 tonnes of CO2 per annum across power generation, mobility and industrial applications.
  • Provaris will now advance a partner process to seek interested groups in the areas of investment, offtake, construction and operational support to jointly develop the project.

Provaris’ Managing Director and CEO, Martin Carolan, commented:The completion of the Concept Design Study marks a significant milestone for the Company. The continued development of the Tiwi H2 project demonstrates our confidence of the project’s suitability and competitiveness as a compressed hydrogen production and export project.

Completion of the Study enables Provaris to enter informed discussions with interested third parties about hydrogen offtake and development alternatives, including investment in or ownership of the upstream generation and hydrogen production or investment at the overall project level”.

Provaris’ Executive Director and Chief Development Officer, Garry Triglavcanin continued:Together with the lodgement of the EPA Referral, the Study delivers a detailed base case for the Tiwi H2 project to progress to further Munupi permissions, and then into the permitting, approvals, and pre-FEED for a staged development of a fully integrated green hydrogen project, with a target export volume of 100,000 tonnes per annum, level over 30 years.

The combination of low environment impact, port infrastructure, proximity to market, and compression provides Provaris and the Tiwi H2 project with a potential first-mover advantage in the region, by targeting first exports in 2027, and has the potential to be Australia’s first export project of gaseous green hydrogen.

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