Provaris Energy (ASX:PV1) is strategically positioning itself to capitalize on the rapidly expanding global Carbon Capture and Storage (CCS) market through pioneering liquid CO2 (LCO2) tank solutions. The company’s partnership with Yinson, a global operator of energy infrastructure assets, is central to this strategy. The collaboration aims to develop bulk-scale LCO2 tanks and integrated shipping solutions, addressing a critical industry need for cost-effective storage and transport. Yinson’s involvement provides Provaris with access to immediate market opportunities, particularly through the joint development of the 10 Mtpa Havstjerne CCS project in Norway.
The global CCS industry is valued at USD 8 billion in 2024 and is forecast to grow at over 20% CAGR. Existing LCO2 capture infrastructure is mature but limited in capacity, creating a bottleneck that Provaris and Yinson aim to resolve. Current shipping solutions are limited to 7,500 cbm vessels, while demand is growing for capacities exceeding 30,000 cbm. Provaris’ solution offers lower capital and operating costs per cbm of LCO2 storage, providing significant cost efficiencies. This involves developing larger “bulk scale” storage and vessels to meet growing CO2 marine transportation requirements. Provaris plans to generate revenue through license fees for tanks required in floating storage, shipping, and land-based storage solutions.
The company’s development program is fully funded by Yinson under a Joint Development Agreement. Phase 1, the concept design, is complete. Phase 2 (Pre-FEED) is in progress, with detailed design for LCO2 tank & fabrication underway, integrated with a Floating Storage Injection Unit (FSIU). Phase 3 (FEED) is expected to commence in August 2025, planning the scope and key terms. A key milestone in June 2025 targets class-level approval of the LCO2 tank design and integration with the FSIU. Yinson has committed approximately USD 500,000, including technical and management fees to Provaris. Tank designs and IP will be jointly owned, providing a global opportunity to license designs for maritime and storage applications from 2026. This positions Provaris to secure a key role early in a new growth shipping sector.
