Provaris Energy Ltd (ASX:PV1) represents a unique investment opportunity as a leveraged play on the global shift to alternative energy and carbon reduction, through its innovative and proprietary storage tank design for compressed hydrogen and liquified (L)CO2. The recently completed capital raise ($1.325m at 1cps)[1] supports critical phase works to crystallise the commercial pathway through the fabrication, testing and Class Approval of its proprietary hydrogen tank prototype whilst in parallel, progressing its CO2 business stream through the Front End Engineering Design (FEED) development phase. The commercialisation of the CO2 development model has become materially more advanced with the commercial timing gap between the hydrogen and CO2 opportunities closing and which, on balance, we consider to be an important and strategic outcome. The immediate rerating outcome is delivery of Class Approval on the hydrogen tank to underpin FID on an initial development project. We maintain our optimistic view that the development potential can be considered as ‘open-ended’ in a practical sense, based on large addressable markets for clean energy and carbon capture. Provaris will not be the only play(er) in these emerging sectors, however, securing financing should maintain the company’s significant IP first-mover advantage.
