ADVERTISEMENT

PROVARIS Energy has completed a concept design study for its hydrogen export project in the Tiwi Islands, featuring a target export volume of 100,000 tonnes of green hydrogen per annum from 2027 onwards.

The Tiwi H2 project is part of Provaris’ stated vision to develop a safe, sustainable and efficient supply chain for exporting green hydrogen into the Asia-Pacific region.

The Tiwi Islands are part of the Northern Territory, located around 80 kilometres north of Darwin.

Provaris said completion of the Tiwi H2 project concept design study establishes a pathway for the project to progress into technical, commercial and economic studies; and for the company to consider potential financing options.

According to Provaris, the study confirmed the project is technically feasible, with hydrogen production and export expected to begin in 2027 and continue over a 30-year project life.

It outlined a project capital cost estimation of between US$4.5 and US$5.2 billion during construction and found the existing port and land access would save development time and capital.

The study reportedly identified social and economic benefits to the traditional landowners – the Munupi clan – and the broader Northern Territory economy with the potential to generate some 500 construction jobs and 100 operational roles.

It also supported the merits of compression and the use of Provaris’ proprietary H2Neo carriers in transporting compressed hydrogen from the Tiwi H2 project to South East Asian energy markets.

ADVERTISEMENT

However, the study also highlighted potential project risks and barriers, such as challenging economics around early green hydrogen projects.

It also noted the possibility that the project is unable to secure required approvals and permissions from the traditional landowners and the federal and state governments.

But Provaris managing director and CEO Martin Carolan said the continued development of the Tiwi H2 project demonstrates the company’s confidence in the project’s stability.

“Completion of the study enables Provaris to enter informed discussions with interested third parties about hydrogen offtake and development alternatives, including investment in or ownership of the upstream generation and hydrogen production or investment at the overall project level.”

Garry Triglavcanin, Provaris executive director and chief development officer, said the study delivered a case for the Tiwi H2 project to progress to further Munupi clan permissions.

“The combination of low environment impact, port infrastructure, proximity to market and compression provides Provaris and the Tiwi H2 project with a potential first-mover advantage in the region, by targeting first exports in 2027,” he said.

The timing of preliminary-front end engineering and design studies will be determined by the outcome of the Tiwi H2 project’s NT Environmental Protection Authority referral, expected to be released in October this year.

Further permissions and consultation on commercial terms with the Munupi clan will also influence timing and decisions around further studies.  

ADVERTISEMENT