Longspur Research has provided a research note and commentary on Provaris’ recent investor update on the CO₂ Tank development and context of a new commercial opportunity underdevelopment with its commercial partner Yinson Production AS

CO2 OPPORTUNITY GROWING

Provaris is making progress with its Joint Development Agreement (JDA) with Yinson to develop a liquid CO₂ (LCO₂) tank solution at a time when carbon dioxide removal developments are showing strong momentum. The company recently issued an updated presentation on its LCO₂ opportunity and we think this is a good time for investors to look at this business. Near term catalysts including securing a type rating for the tank design could help to crystalise value in our view

In a timely announcement this week, the European Commission adopted a Delegated Regulation yesterday, specifying the identification and calculation rules that apply to European oil and gas producers required to provide new CO₂ storage solutions by 2030.

In short, the EU’s directive will mandate a target of 50 million tonnes of annual CO₂injection capacity into geological CO₂ storage sites by 2030 as established by the Net-Zero Industry Act, including the naming of 44 oil and gas companies who are required to develop operational CO₂ injection capacity by 31 December 2030, based on their share of EU oil and gas production between 2020 and 2023.