Longspur Research has provided a research note and commentary on Provaris’ recent investor update on the CO2 Tank development and context of a new commercial opportunity underdevelopment with its commercial partner Yinson Production AS
CO2 OPPORTUNITY GROWING
Provaris is making progress with its Joint Development Agreement (JDA) with Yinson to develop a liquid CO2 (LCO2) tank solution at a time when carbon dioxide removal developments are showing strong momentum. The company recently issued an updated presentation on its LCO2 opportunity and we think this is a good time for investors to look at this business. Near term catalysts including securing a type rating for the tank design could help to crystalise value in our view
In a timely announcement this week, the European Commission adopted a Delegated Regulation yesterday, specifying the identification and calculation rules that apply to European oil and gas producers required to provide new CO2 storage solutions by 2030.
This initiative marks a significant shift in how fossil fuel producers are being held accountable for their role in climate mitigation, turning their infrastructure and expertise toward carbon capture and storage (CCS).
In short, the EU’s directive will mandate a target of 50 million tonnes of annual CO2injection capacity into geological CO2 storage sites by 2030 as established by the Net-Zero Industry Act, including the naming of 44 oil and gas companies who are required to develop operational CO2 injection capacity by 31 December 2030, based on their share of EU oil and gas production between 2020 and 2023.
source: cyprusshippingnews.com
