Provaris Energy and Norwegian Hydrogen have signed a Memorandum of Understanding (MoU) with Uniper Global Commodities SE to explore the development of a regional hydrogen supply chain in Europe.
This partnership aims to align with the European Union’s Renewable Energy Directive and REPowerEU plan by providing Renewable Fuel of Non-Biological Origin (RFNBO)-compliant hydrogen.
Provaris Energy, Norwegian Hydrogen, and Uniper’s collaboration underscores a significant commitment to advancing hydrogen infrastructure in Europe. The partnership aims to leverage Provaris’ H2 Neo carriers and H2 Leo storage barges to transport green hydrogen produced by Norwegian Hydrogen. This approach promises to enhance the efficiency and cost-competitiveness of hydrogen supply chains.
However, when compared to industry benchmarks, the actual effectiveness and scalability of these hydrogen transport and storage solutions remain to be seen. The industry has seen various innovative approaches to hydrogen logistics, such as liquid hydrogen and ammonia-based transport solutions, which are also vying for cost-effectiveness and scalability. Provaris and its partners will need to demonstrate how their compression-based technology stands out in terms of reliability, safety, and overall lifecycle costs.
Meeting German Hydrogen Demand
Germany’s hydrogen demand is projected to increase substantially, from 55 terawatt hours (TWh) currently to between 95-130 TWh by 2030. This surge in demand is driven by Germany’s National Hydrogen Strategy, which aims to integrate hydrogen into its industrial and energy sectors to meet decarbonization targets.
While the collaboration with Uniper targets Germany’s hydrogen needs, the competition within the hydrogen market is intense. Major players like Siemens, Air Liquide, and Linde are also actively involved in hydrogen projects across Europe. These companies bring extensive expertise and established infrastructure to the table, posing significant competition to Provaris and Norwegian Hydrogen’s initiatives. The ability of Provaris to secure a stable and cost-effective hydrogen supply chain that meets stringent RFNBO compliance will be critical to its success.
Provaris Energy’s CEO, Martin Carolan, emphasizes the business case for compression technology as a cost-competitive and energy-efficient solution for hydrogen supply. This assertion aligns with the need for capital and energy-efficient methods to make green hydrogen commercially viable.
The European Union’s Renewable Energy Directive and REPowerEU plan set stringent standards for RFNBO-compliant hydrogen. Ensuring compliance with these regulations is crucial for market acceptance and integration into national hydrogen infrastructures. Provaris and its partners must navigate these regulatory landscapes effectively to avoid potential setbacks.
