HIGHLIGHTS:

• EU is now implementing a €100 billion Industrial Decarbonisation Bank to accelerate commercial deployment of hydrogen, CCS and industrial decarbonisation projects across Europe.

• Funding support is expected to improve project bankability by helping bridge the gap between development, Final Investment Decision (FID) and commercial operation.

• The initiative reinforces the investment case for Nordic hydrogen exports and Europe’s growing need for imported low-carbon molecules to meet binding decarbonisation mandates.

• Combined with rising carbon prices, hydrogen demand quotas and CCS infrastructure investment, the proposal strengthens long-term opportunities across both hydrogen and CO₂ supply chains.

• Provaris’ benefits from our role in developing innovative and efficient solutions that enable industry to reduce the cost per tonne of transport and storage, with our business case being endorsed by the industry partners we have in place.

The European Commission's proposed €100 billion Industrial Decarbonisation Bank (IDB) is a flagship financing institution officially proposed by the European Commission to fund large-scale emissions reductions in Europe's heavy and energy-intensive industries.

During the July the IDB has finalised a key legal framework in order to be operational in 2028 deploying an estimated €30 billion. This represents a significant policy and funding catalyst for industrial decarbonisation across Europe, with clean hydrogen and CCS expected to be core areas of support.

Sectors including steel, cement, chemicals, and refining account for around 20%1 of CO₂ emissions and must decarbonise while continuing to operate amid high energy costs, global competition, and rising carbon prices.

Industry recognises there is no silver bullet for a single technology or process to achieve the EU’s goals. Across steel, cement, refining, chemicals, and pulp and paper, decarbonisation hinges on capital-intensive and infrastructure-dependent pathways, including carbon capture and storage (CCS), clean hydrogen, and electrification of industrial heat. Provaris’ benefits from our role in two of these pathways with efficient solutions that enable industry to reduce the cost per tonne of transport and storage, with our business case being endorsed by the global partners we have in place.

IDB’s milestone announcement directly aligns with the themes we have consistently highlighted in our investor communications regarding policy-driven demand creation which increasingly drives the bankability of low-carbon infrastructure investments – including marine storage and transport.

Key Takeaways on the IDB:

·        €100bn commitment to industrial decarbonisation – The IDB is designed to accelerate investment in hard-to-abate sectors including steel, chemicals, refining, shipping and aviation, where both hydrogen and CCS are considered essential decarbonisation solutions.

·        Hydrogen projects eligible for support – The Commission has confirmed that both clean hydrogen producers and industrial users are expected to be eligible for funding under the proposed framework, strengthening the economics of future hydrogen supply chains with FIDs aligned to the IDB’s implementation.

·        Focus on commercial deployment and bankability – Unlike many earlier programmes focused on demonstration projects, the IDB is intended to support projects through to commercial operation, helping bridge the gap between development and Final Investment Decision (FID).

·        Supports both H2 and CO₂ infrastructure development – The proposed funding mechanisms are expected to support enabling infrastructure including hydrogen networks, CO₂ transport and storage systems, and associated industrial decarbonisation projects.

Investor Takeaways:

• The proposed €100 billion Industrial Decarbonisation Bank represents a major escalation in EU support for industrial decarbonisation, with clean hydrogen and CCS identified as core enabling technologies.

• The IDB aims to accelerate final investment decisions and commercial deployment of projects across Europe's hardest-to-abate sectors.

• For Provaris, the initiative strengthens the investment case for Nordic hydrogen supply chains and reinforces the long-term need for imported hydrogen into Europe, particularly Germany, where policy-driven demand is now emerging alongside substantial public funding support.

• This development is highly consistent with our existing messaging that Europe is transitioning from policy ambition to implementation. As funding support, demand mandates and infrastructure development increasingly align, we believe these initiatives can materially improve the bankability of both hydrogen and CO₂ supply chains over time to align with project FID timelines.

We look forward to updating investors shortly on several pending and important technical, commercial and strategic milestones expected in the September and December quarters across both Hydrogen and CO₂. With the the return to work by our Nordic based team members and project Partners post the July summer break, it will be an exciting and busy second half of 2026.