Announcement PDF Media & ASX Announcement | 27 June 2023 Collaboration Agreement signed for joint development of the 270 MW FjordH2 project in Norway HIGHLIGHTS: • • • • • Provaris Energy and Norwegian Hydrogen (Partners) have entered a Collaboration Agreement (Agreement) to jointly progress the development for the 270 MW FjordH2 hydrogen project. Focus of development is on advancing pre-FEED activities, permitting, PPA, and offtake. Partners to define and agree the key terms of a definitive Joint Development Agreement (JDA) for joint development of the FjordH2 project. FjordH2 project to become one of the largest production facilities in the Nordic region to support the REPowerEU’s import demand by 2030. Recently approved Delegated Acts on renewable hydrogen provide legal certainty for both producers and consumers of renewable (green) hydrogen and are viewed as a pivotal step to attract the necessary investments to decarbonize downstream sectors. SYDNEY: Provaris Energy Ltd (ASX.PV1) (Provaris, or the Company) is pleased to announce it has entered a Collaboration Agreement with Norwegian Hydrogen AS, to jointly progress the next phase of development for the FjordH2 project, located at Ørskog in the Ålesund municipality, Norway. Martin Carolan, Provaris Managing Director and CEO commented: “Provaris is delighted to formalise a collaboration with Norwegian Hydrogen for the joint development of the FjordH2 project. Provaris’ unique approach to developing integrated hydrogen projects for export using compression delivers a flexible, efficient and early mover advantage for Norway to support the REPowerEU demand for imported volumes of green hydrogen. The collaboration with Norwegian Hydrogen will be key to the project given their expertise and leadership in hydrogen production and distribution projects underway in Norway and Denmark.” Jens Berge, Norwegian Hydrogen’s CEO commented: “Partnering with Provaris Energy on the FjordH2 project is an important step forward for us. By combining Provaris' expertise with our own experience, we are well-positioned to make a substantial impact in meeting the growing demand for large volumes of green hydrogen. Together, we are dedicated to realizing the FjordH2 project's immense potential, as it has the capacity to become one of the largest production facilities in the Nordic region. This facility will play a vital role in supporting REPowerEU's import demand and contributing to a zero-emission future” Under the Agreement, the Partners will carry out an agreed scope of work to advance the FjordH2 project. The work program will focus on advancing pre-FEED activities, permitting, PPA, and offtake. During the term of the Agreement, the Provaris and Norwegian Hydrogen will also define and agree the key terms of a definitive Joint Development Agreement (JDA) between the Parties in relation to the joint development of the FjordH2 Project. The intention is to enter a binding JDA during 2023. A detailed timetable for the development of the project through to FID is under development, with the target for the export of green hydrogen in 2027. Further details on the project schedule will be released in the third quarter of 2023. The FjordH2 project Partners also welcome the recent approvals for the European Commission’s Delegated Acts outlining detailed rules on the EU’s definition of renewable hydrogen. We expect the project to be in compliance with the additionality rules that apply to new supply projects for Europe and will continue to monitor the legal framework so that the project development plans remain in compliance in order to avoid any disruption to the development schedule. ACN 109 213 470 | WWW.PROVARIS.ENERGY FjordH2 – providing flexible bulk-scale hydrogen production and export to REPower the EU The development plan will position the FjordH2 project to become one of the largest production facilities for green hydrogen in the entire Nordic region. With access to renewable power from the Ørskog substation, the hydrogen production facility will have a capacity of 270 MW when it is fully developed, with a production capacity of 40,000 tonnes of green hydrogen annually. A capacity of 20MW has been granted, and an application for a further 250MW capacity has already been submitted and is being processed. Provaris’ unique approach to integrating compression as an export vector for green hydrogen provides an early mover export advantage to Europe and enable the electrolysis plant to be designed with a high degree of flexibility when it comes to usage of the power grid and has the option to adjust production if required. Flexibility can also enhance the competitive price for hydrogen delivered to Europe. This unique and flexible design means the hydrogen production facility can work together with other regional users of the power grid, which is of great importance when grid connections of this size are to be assessed. Regional benefits will be significant, with the project to create more than 50 new jobs in Ørskog, and including the indirect ripple effects, it will also lead to many more jobs beyond this. During the production of hydrogen through electrolysis using renewable energy, circular business opportunities are also created utilizing large volumes of surplus heat for district heating and clean oxygen for the aquaculture. Illustration of the hydrogen production plant at Ørskog in Ålesund municipality Compression plant located at adjacent site to a dedicated jetty for bulk export using Provaris H2Leo storage barge and H2Neo carrier. www.provaris.energy Page 2 - END – This announcement has been authorised for release by the Managing Director of Provaris Energy Ltd. Norm Marshall Company Secretary +61 481 148629 nmarshall@provaris.energy ASX.PV1 Martin Carolan Managing Director & CEO +61 404 809019 mcarolan@provaris.energy @ProvarisEnergy Maude Lacasse NWR Communications +61 416 499856 maude@nwrcommunications.com.au Provaris Energy Ltd. info@provaris.energy Perth: Unit 19, 40 St Quentin Avenue Claremont, WA 6010, Australia Sydney: Level 14, 234 George St, Sydney NSW 2000, Australia Oslo: Technopolis HUB, Martin Lingesvai 25, 1364 Fornebu, Norway About Provaris Energy Provaris Energy Ltd (ASX: PV1) | www.provaris.energy Provaris Energy (ASX: PV1) is an Australian public company developing a portfolio of integrated green hydrogen projects for the regional trade of Asia and Europe, leveraging our innovative compressed hydrogen bulk storage and carrier. Our focus on value creation through innovative development that aligns with our business model of simple and efficiency hydrogen production and transport can establish an early-mover advantage for regional maritime trade of hydrogen and unlock a world of potential. In August 2022 Provaris Norway AS was established to advance the development of hydrogen export projects from Norway and other European locations. About Norwegian Hydrogen Norwegian Hydrogen is a hydrogen company with operations throughout the Nordic region. The company focuses on both the production and distribution of green hydrogen, tailored to meet future requirements for zero-emission fuel in a wide range of mobility sectors and industry segments. The company has a number of strong industrial owners, such as Flakk Gruppen, Hexagon Purus, Hofseth International, Tafjord and Mitsui & Co., Ltd. Norwegian Hydrogen has its head office in Ålesund, as well as offices in Oslo, Narvik, Helsinki, Copenhagen and Stockholm. Contact information: Jens Berge, CEO Norwegian Hydrogen AS, Email: jens.berge@nh2.no, Mobile: +47 90 55 13 55 Marielle Furnes Mannseth, Group Brand & Sustainability Officer Norwegian Hydrogen AS, Email: marielle@nh2.no, Mobile: +47 93 40 21 40 Disclaimer: This announcement may contain forward looking statements concerning projected costs, approval timelines, construction timelines, earnings, revenue, growth, outlook or other matters (“Projections”). You should not place undue reliance on any Projections, which are based only on current expectations and the information available to Provaris. The expectations reflected in such Projections are currently considered by Provaris to be reasonable, but they may be affected by a range of variables that could cause actual results or trends to differ materially, including but not limited to: price and currency fluctuations, the ability to obtain reliable hydrogen supply, the ability to locate markets for hydrogen, fluctuations in energy and hydrogen prices, project site latent conditions, approvals and cost estimates, development progress, operating results, legislative, fiscal and regulatory developments, and economic and financial markets conditions, including availability of financing. Provaris undertakes no obligation to update any Projections for events or circumstances that occur subsequent to the date of this announcement or to keep current any of the information provided, except to the extent required by law. You should consult your own advisors as to legal, tax, financial and related matters and conduct your own investigations, enquiries and analysis concerning any transaction or investment or other decision in relation to Provaris. $ refers to Australian Dollars unless otherwise indicated. 9 www.provaris.energy WWW.PROVARIS.ENERGY Page 3