Announcement PDF Compressed Hydrogen Establishing low-cost hydrogen supply chains to Europe May 2024 www.provaris.energy | ASX.PV1 This presentation and these materials (together the “Presentation”) have been prepared by Provaris Energy Ltd ACN 109 213 470 (ASX:PV1) (“Provaris”) as a summary of Provaris’ operations and results for the purposes of a presentation to existing or potential investors in Provaris. By participating in this Presentation or reviewing or retaining these materials, you acknowledge and represent that you have read, understood and accepted the terms of this Important Notice and Disclaimer. This Presentation should be read in conjunction with Provaris’ 31 December 2023 Half Year Report lodged with the Australian Securities Exchange (“ASX”) on 28 February 2024 and other periodic and continuous disclosure announcements that have been lodged by Provaris with the ASX. 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This presentation was authorised by the CEO for release on 21 May 2024 2 Provaris is developing simplicity and efficiency of compression to using the Australian-listed company focusing on the production, storage and shipping of hydrogen, with a European office in Oslo, Norway. Established collaborations with technical and commercial partners to implement innovative approach for the production, storage, and transportation of bulk-scale hydrogen in Europe. Safe, efficient and low-cost hydrogen storage and transport are crucial for Europe to achieve its 2030 energy transition goals. Increasing attention from European utilities, highlighted by three Memorandums of Understanding (MOUs). Supporting our status as the lead importer of gaseous hydrogen in Europe before 2030. : Final approvals for storage and shipping IP, expected to lead to binding agreements and early revenue opportunities starting in 2024. 3 to ship H2 and addresses the scarcity of gaseous H2 supply Production of Hydrogen Proprietary Storage & Shipping Solutions Provaris’ unique business model operates across the supply chain… Green Hydrogen Production Renewable Energy Electrolysis (gaseous H2; 20-30 barg) Compression, Storage and Marine Transport Compression & Loading (250 barg pressure) Storage & Transport (gaseous H2, no boiloff) Decompression & Unloading Distribution (Ports/Pipeline) Pipeline - Gaseous Hydrogen (50-100 barg) End-user Markets Steel Glass Smelters Refineries CCGT Power Generation [Capex would typically represent 25-35% of the total supply chain & 20-30% of Delivered H2 price] Mobility (HDVs, Maritime) Compression the lowest cost carrier for regional hydrogen, ready to deliver at scale late 2027… 4 44 Simplicity and conversion efficiency of compression demonstrates a lower delivered cost of hydrogen > It’s not all about the energy density! > Maintains gaseous H2 cargo; No cargo loss (boil-off); Ambient temperature > Priority industrial applications (refineries, steel, power, HDV) all need H2 gas > > > Conversion of H2 into a carrier for export (KWh/Kg H2 – energy used) 12 9 10 8 6 4 1.5 2 0 Liquefaction (-253 degrees) Ammonia (NH3) Compression (250 bar) Reconversion to gaseous H2 ready pipeline gas (% energy lost) Eliminates refrigerated storage at loading and discharge ports 30 Combination of lower capex & 50% less energy use = lower delivered cost 20 Simplicity, efficiency and cost advantage now recognised by European utilities 11 25 25 15 10 5 5 0 0.5 NH3 - Cracking LH2 - Regas CH2 - Scavenging 5 Increasing number of countries committed to a net-zero policy positions hydrogen as essential pillar to reach the targets Unprecedented support through policy and funding to scale infrastructure for production, storage and transport Global hydrogen demand in the Net Zero Scenario, 2020-2030* Refining Power Industry Ammonia - fuel Transport Synfuels 200 180 ~100Mt growth to meet 2030 Net-Zero & Energy Security targets Millions Tonnes H2 160 140 120 100 > Development ‘low-emission’ (blue) hydrogen also requires scale up of CCS technology, storage and transport infrastructure > Hydrogen produced from electrolysis (green) seen as the holy grail; costs driven by scale/maturity of technology and renewable energy source > Conversion to another molecule for transport comes at a cost through additional energy, scale and capex 80 60 > Regardless of color or emissions - there is a need to establish global efficient supply chains for hydrogen 40 20 0 > 98% of all hydrogen today is produced with fossil fuels and no carbon capture (CCS), creating 1-2kg CO2 emissions per kg 2020 2025 (*IEA, 2023) 2030 for developers who can provide a low-cost supply of green hydrogen before 2030 6 Germany’s requirement for energy security with a transition to green fuels requires dependency on imported hydrogen EU’s largest power market (625TWh or 200GW) committed to phase out coal; banned uranium: and reliant on LNG Germany’s 2030 hydrogen ambition (in TWh) “Meeting German demand solely through domestic supply would neither be technically nor economically viable”. NHS 2023 Equates to 1.5-3 Mtpa of H2 imports ~95 - 130 > EU Green deal committed €100 billion to support industries (Innovation Fund; Horizon Europe; EU Hydrogen Bank; H2Global) Steel Glass Smelters 50-70% imports ~45 – 90 Refineries CCGT Power Generation Mobility (HDVs, Maritime) > Major power utilities announced investments +€100B in energy transition projects by 2030, including hydrogen > Development of import infrastructure includes ship transport and pipelines via ‘core-network’ > Germany tendering for 10 GW of ‘H2-ready’ gas-fired generation capacity for 2030 ~40-50 Domestic Green H2 Total H2 1 Production demand in 2030 Provaris focused on Europe for commercialisation regional supply to Germany Gap to be bridged with imports Commodities) Source BMWK | 1 Includes forecast demand for H2 derivatives such as ammonia, methanol, synthetic fuels and other sustainable fuels.; 33 TWh = 1 Tonne H2 of gaseous H2 (including Uniper Global 7 Europe has established policy framework with increasing funding to support large-scale deployment of hydrogen to meet 2030 targets 2024 continues to see the introduction of both EU and country specific incentive schemes for both supply and offtake > 2019: EU Green Deal launched – package of policy objectives to reach net-zero by 2050. > 2021: EU turned climate goals into legislation with “Fit for 55” with member states committed to cutting net greenhouse gas emissions in the EU by at least 55% by 2030, compared to 1990 levels. Estimated investment of €70 billion up to 2050, funded through ETS schemes (C-BAM). > 2023-4: Increasing funding schemes announced for hydrogen activities across technology innovation, production of renewable and low-carbon hydrogen and distribution, and implementation in downstream industries. EU Funding initiatives continue to flow in 2024… Emergence of industrial scale offtake… Establishing a across hydrogen production, shipping and storage Integrated development model provides multiple pathways to commercialise our IP and diversity of revenue Hydrogen Production for Export Proprietary Shipping Solutions Ports & Distribution Production of industrial storage tanks Leveraging unique IP and approach across the supply chain… • Collaboration for H2 Supply projects in Norway • Infrastructure funds seeking FID ready supply projects • Advanced design & approvals for hydrogen carriers • Shipowners to fund and operate fleet under LT charter • 3 MOUs for H2 supply with German utilities • Collaboration for Rotterdam import terminal Potential for multiple revenue sources and value creation for shareholders… 1> Equity share in hydrogen production assets 2> License fees for ship design > Share of cash flow from long-term 3 charter agreements 4> Long-term supply agreements underwrite investment in the supply chain assets JV for production of tanks in Norway for distribution to Europe, providing early revenue opportunity in 2024 Target first revenue 2024… 5> JV partnership for hydrogen tank production and sales 9 9 Making substantial progress on H2 supply chains for Europe across supply, shipping, ports and offtake Provaris’ focus in Europe being validated through Collaborations and MOUs for commercialisation SUPPLY 270 MW, 42ktpa H2 > Joint development with Norwegian Hydrogen for H2 supply from Nordic sites (FjordH2 PFS demonstrated competitive delivered cost; benefits of grid connected sites) > Additional sites under review for supply using Provaris carriers – Norway, Iberia, UK SHIPPING 600 – 1,000 N.Miles Scotland ~600 N.Miles > Clarksons acting as Advisor (shipyards, owners, financing) Brunsbüttel IMPORT & DISTRIBUTION Eemshaven > Collaboration with GES for Port of Rotterdam import terminal provides market access to Europe Rotterdam > Due diligence with Dutche and German pipeline ports and TSOs OFFTAKE > Includes Uniper Global Commodities Finland ~350 N.Miles > Final Class Approval (DNV) pending successful prototype testing in Norway > 3 MOUs signed with German utilities ( collective ~€60 billion budget spend on Energy Transition by 2030) Provaris Norway AS Oslo 850 – 1,400 N.Miles Spain Stade Hamburg Wilhelmshaven Germany 3 MOUs with German utilities targeting H2 supply Industrial H2 import 1.5-3 Mtpa by 2030 GES to develop compressed H2 import terminal 10 Proprietary ship design and IP for world first bulk-scale gaseous hydrogen carrier H2Neo Hydrogen Carrier (450 t) Final Class Approvals 2024 Shipowners to finance and operate the fleet Application of existing technology provides flexible and low capex jetty solutions Extension of tank IP for industrial storage applications creates a 2024 revenue opportunity H2Leo Hydrogen Storage (300-600 t H2) Industrial Buffer Storage Supported by: Refueling Stations Maritime Fuel/Bunkering Gaseous H2 storage 1 – 10 tonne capacity 250 barg 11 11 Collaboration for large-scale export of green hydrogen from the Nordics to the EU Track of developing hydrogen facilities across the Nordics (incl. Norway and Denmark) Collaboration projects include equity in supply projects www.nh2.no 12 Collaborating with Global Energy Storage for a compressed hydrogen import facility at Port of Rotterdam > Largest energy terminal in the world > Site adjacent to HyNetwork H2 pipeline under construction along with road, rail and barge for distribution within port > GES own and operate the terminal > Feasibility study and co-marketing 2024 > Provides access to European markets by 2028 > GES operator of 3 terminals, backed by private equity energy infrastructure funds 13 World first bulk-scale hydrogen carrier pending final approvals mid-2024 Unique Proprietary tank design ‘unlocks’ significant market opportunity for low-cost storage and bulk-scale shipping 2021 2022 AiP received FEED Design Approval (Approval in Principle) (Construction ready subject to Prototype Test) (H2Neo Hydrogen Carrier – Illustration) H2Neo carrier 2024 2025 Final Class Approvals • Scale-up production of Target - Mid 2024 tanks • Prototype Tank Testing • FID H2 Project • LOI Shipbuild Contract • Charter contract +10yrs • First orders for industrial tanks • Shipbuild contract 2027/28 • Hydrogen export projects based on Provaris hydrogen carriers • Shipping operations aligned to H2 Export project • Revenue share of production and shipping contracts Illustration: Prototype Tank (2.5m * 11m), 650kg H2 capacity Conventional MR tanker Cargo capacity: 27,000m3 (450t) Project export capacity scale 1: 200,000 tpa (<2,000 Nm) Hybrid propulsion system including Battery & H2 Fuel Cell Extensive FEED and safety studies completed Note 1Assumptions: • Unloading in 18 hours • Fleet Ships is based on project production rates and distance to market • Actual importation volumes can be multiples of the above “fleet” production facility capacities. Marine Classification 14 Technical Partner All design drawings are protected by copyright: ©2023 Provaris Energy Ltd Group 14 Large addressable market for industrial hydrogen storage solutions seeking alternatives to high-cost composite solutions Demonstrated approvals and efficient production cell facility in Norway to accelerate revenue business in 2024 Large addressable market focused compression Maximise the volume of hydrogen stored at lowest capital cost 1 800 > Long-term storage is focused on caverns which takes time and capital 700 > Existing market applications focus on small-scale (sub-1-tonne) high-cost composite tanks, short duration, localized storage or conversion to hydrogen alternatives. 600 Industrial Buffer Storage 1-tonne capacity tank vs 40t container solution Refueling Stations Maritime Fuel/Bunkering Illustration 1,5,10 tonne tanks USD per kg H2 stored > Buffer storage for intermittency or maintenance creates flexibility and lowers the cost of hydrogen Carbon Fibre 500 Glass Fibre 400 Provaris 300 200 Example of Europe refueling market opportunity: > AFIR legislation passed by the EU in Sept. 2023 > Stipulates minimum 1-tonne H2 storage capacity for 657 HRS sites to be deployed across 27 member states by 2027. > Deployment must start in 2025. 100 0 1-tonne 1 Longspur Research, 2024 8.5 tonne 15 Advanced development program positions Provaris as a 2024 investment story Multiple catalysts providing long-term value creation from H2 supply projects and early-stage revenue from industrial tanks production and sales Key milestones for 2024… Mid-2024: Prototype Tank testing & Final Class Approvals for H2Neo carriers 2H-2024: First orders for small scale tanks for delivery and revenue late 2024 Creating shareholder value… Shipyard contract, owners and financing terms Early revenue from tank sales 2024 • Production facility established • First orders and revenue 2024 2H-2024: Target for binding agreement with German Utilities for H2 supply and shipping First Export Project FID in 2025, export 2027 2024: Additional hydrogen supply projects moving through feasibility with Provaris H2Neo carriers Equity share in H2 supply projects using Provaris carriers 16 Investment Highlights 1 Leveraged to European policy actions mandating the use of hydrogen supported by funding incentives for technology, producers, importers and industrial users 2 Unique IP and innovation using compression creates first mover advantage and most economical regional hydrogen supply before 2030 3 Pending shipping approvals paving the way for binding hydrogen supply chain agreements and the launch of industrial storage tanks for early revenue opportunity in 2024 4 Increasing attention from major German utilities seeking gaseous hydrogen supply alternatives, evidenced with 3 MOUs (Uniper) and import terminal (GES) collaboration for Rotterdam 5 Advancing hydrogen supply projects in collaboration with local partners, utilizing Provaris storage and transport solutions 6 Multiple discussions underway for funding alternatives in the development and infrastructure asset development 17 Corporate Overview Capital Structure Ordinary Shares on Issue (PV1.ASX; WS90.BE) 12mth Share Price Performance 597 M Market Capitalisation (at 4.5c) A$ 27 M Cash (31 March 2024) A$ 1.7 M Convertible Bonds (Macquarie Bank) 1 A$500,000 Performance Rights 2 24.0 M Unlisted Options 3 41.7 M 1. A$3 million Two-year standby facility with Macquarie Bank, announced 3 May 2024. 2. Performance Rights issued to Management Expiry 2025. 3. 9M at 18.75c, Expiry November 2024; 23.75 at 7.5c, Expiry March 2026; 4M at 6.6c, Expiry May 2027 Shareholding (Undiluted) OC Funds Management 4.9% HNW/Family Office 15.0% Board & Management 7.0% Total top 20 38% 18 18 Board & Management Global experience in energy infrastructure, utilities, ship newbuilds, operations, and capital markets Martin Carolan Greg Martin Andrew Pickering David Palmer Commercial & Capital Markets Business Leader, Energy, Infrastructure, Governance Shipping, Newbuilds, Tankers, LNG Shipping, Commercial, Financing SYDNEY SYDNEY SYDNEY LONDON Managing Director & CEO Per Roed Chairman Non-executive Director Norman Marshall Non-executive Director Chief Technical Officer Mats Fagerberg Business Development Europe Garry Triglavcanin John Stevenson Jessica Roed Product Development Director Group Commercial Manager Group Financial Controller Operations Manager, Norway Newbuilds, Tankers, LNG, Ports, Operations Commercial, LNG, Infrastructure, Shipbroking Engineer, LNG, Project Development Legal, Commercial, Project Finance Accounting, Finance Shipping, Logistics OSLO LISBON PERTH PERTH SYDNEY OSLO 19 Contacts Martin Carolan Managing Director & CEO mcarolan@provaris.energy Norm Marshall Company Secretary Media & PR Enquiries Melanie Singh NWR Communications +61 439 748 819 melanie@nwrcommunications.com.au nmarshall@provaris.energy www.provaris.energy ASX.PV1 @ProvarisEnergy Provaris Energy Ltd. Sydney, Perth, Oslo info@provaris.energy Cost of delivered hydrogen is driven by production volume and distance as opposed to a fixed transport cost H2 Transportation Tariff (Euro/kg) Illustrative Compressed H2 Marine Transportation Tariff (Compression, Loading, Shipping, Scavenging) Long Cases 4.00 Mid Cases Short Cases 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 H2 Production (tpa) Short (500 Nm), Mid (1,000 NM) and Long 1,500 NM), with each case assuming flat H2 production profile. www.provaris.energy