Provaris commercial update capital lite revenue model and hydrogen supply chain progress

February 21, 2025

Highlights:

Capital Lite Revenue Model designed to generate early cash flow while avoiding large-scale capex exposure.
Revenue secured through Technology License Fees and Origination Fees, ensuring upfront recurring income streams.
Shipping Fleet Funded by Third Parties: Shipowners or Special Purpose Vehicles (SPVs) to finance and operate hydrogen carriers under long-term charter, with flexibility to invest selectively in fleet assets or projects to enhance long-term value for shareholders.
Projected Returns up to USD 34 million (~AUD 54 million) per project, based on two H2Neo carriers and one H2Leo barge.
First Hydrogen Supply Agreement: Recently announced first Term Sheet with Uniper Global Commodities and Norwegian Hydrogen AS for 42,500 tonnes per year of compressed hydrogen.
First Deliveries targeted for early-2029, with FID and newbuild decisions in early 2026.
Expanding Project Pipeline with demand for compression: A second Nordic supply chain project is materially advanced with a preferred German offtake partner and ongoing discussions with developers in Spain, Norway and Finland who are undertaking detailed assessment on the potential selection of Provaris carriers for storage and transport.

Capital-Light Revenue Model: Monetization Strategy
Provaris has structured its commercialisation model to maximise early cash flow while minimising capital outlay by the Company. This approach leverages Technology License Fees and Origination Fees, avoiding the need for Provaris to directly finance large scale shipping assets.

Provaris’ Managing Director and CEO, Martin Carolan, commented: “Our capital lite license model is structured to provide early cashflow, while avoiding large scale capital requirements. With multiple supply chain projects advancing in parallel, this approach allows Provaris to focus on executing agreements without overextending its balance sheet and significant shareholder dilution. Additionally, the Board retains the flexibility to invest selectively in fleet assets or projects to enhance long-term value for shareholders.”