SANDNES, Norway 5 September 2023 - Horisont Energi (EURONEXT: HRGI) and the
energy company PGNiG Upstream Norway (PUN), part of the ORLEN Group, have today
signed a Letter of Intent (LoI) whereby PUN aims to enter as partner and
operator in the only CO2 licence in the Barents Sea - Polaris.  

The CO2 exploration licence EXL003 with the project name Polaris Licence is
currently fully controlled by Horisont Energi. The LoI lays the ground for
clearing formalities with authorities necessary for PUN to become operator and
acquire a participating interest in the Polaris Licence. The process of
onboarding PUN is expected to be completed by early December this year. 

This LoI is an important milestone in line with the ORLEN Group's strategic
decision to enter the CO2 storage business, with the Norwegian Continental Shelf
as one of the key markets for its implementation. The Polaris project is thus
the ORLEN Group's first intended CO2 licence anywhere. 
 
"Joining forces with  PGNiG Upstream Norway is an important milestone in our
quest to achieve significant emission reductions and contribute to the emerging
CCS industry.  PGNiG Upstream Norway is a robust and qualified partner with
ample operatorship and offshore experience from the Norwegian Continental Shelf.
The new partnership should also help advance our Barents Blue clean ammonia
project by providing accessible CO2 storage capacity. We are excited to join
forces with an experienced and accomplished team," says Bjørgulf Haukelidsæter
Eidesen, CEO of Horisont Energi. 

PUN as partner and operator in Polaris is an important third key element for
Horisont Energi over the last months. The first element was to secure the power
supply for the planned Barents Blue ammonia plant in Northern Norway in June.
The second element was the 50/50 joint development agreement signed with the
European fertiliser company Fertiberia in late August for the joint development
of the Barents Blue ammonia plant. The LoI with PUN covers the Polaris Licence. 

"Efficient and safe storage of carbon dioxide is key to maintaining the
competitiveness of industries that are exposed to high emission costs. Cement,
steel and fertilizers producers, if they want to continue operating in Poland,
or more broadly in the European Union, must find a way to manage carbon dioxide
emissions. In line with the ORLEN Group's strategy, over the next few years we
will build strong competence in the area of carbon management. The expertise we
wish to gather partnering with Horisont Energi on the Polaris project will also
be used in Poland. It will allow us to effectively implement proven and safe
technologies of  CO2 storage and prepare a competitive offer of carbon
management for Polish industry." says Daniel Obajtek, CEO and President of the
ORLEN Management Board. 

Although a preferred CO2 storage solution for the Barents Blue project, the
Polaris Licence is expected to provide additional storage volumes for other CO2
customers.  

A PUN partnership would follow suit to the European energy major E.ON's and
Horisont Energi's prolonged and extended partnership to develop a European CCS
value chain. 

"We are very proud to be a pioneer in the field of industrial CO2 circular
economy together with Horisont Energi. For our industrial customers the Polaris
project can play a key role in achieving their net zero targets. As a partner to
our customers, we stand ready to shape this path" says Patrick Lammers, Member
if the Management Board and Chief Operating Officer Commercial, E.ON SE. 

E.ON and Horisont Energi have previously signed a Letter of Intent for the
storage of about one million tonnes of CO2 in the Polaris licence. Together with
the two million tonnes of CO2 annually from the Barents Blue ammonia plant and
additional CO2 volumes in Northern Norway, there is a substantial commercial
basis for the development of the Polaris Licence. 

The planning of the Polaris CO2 storage started in February 2020 and, upon
application to the authorities, was formally awarded in June 2022. The Polaris
licence is expected to provide the necessary storage capacity for Barents Blue,
with additional storage capacity expected for other CO2 customers in Norway and
Europe. 

 
Facts about the Polaris Licence:   

Type of reservoir: Saline aquifer, i.e. a water bearing reservoir  

Geographical position: In the Norwegian part of the Barents Sea, 140 km off
Hammerfest, Norway   

Area of closure: 350 km2   

Reservoir depth: The structural apex of the reservoir 1400 m TVDSS (true
vertical depth below sea level)  

Water depth: 250 m  

Reservoir thickness: 90 m  

Link to MPD fact pages:   

https://factpages.npd.no/en/bsns_arr_area/pageview/c02licences/40889715 

The Polaris Licence is subject to the Norwegian implementation of the EU CCS
Directive, the European legislative framework concerning the environmentally
safe storage of CO2 to contribute to mitigation of the climate changes by
reducing CO2 emissions at scale.   


For more information:  

Bjørgulf Haukelidsæter Eidesen, CEO  

+47 990 36 892  

bhe@horisontenergi.com  

 
Leiv Kallestad, CFO 

+ 47 958 95 661 

Leiv.kallestad@horisontenergi.com  

 
Siri Melberg, Head of branding & communication 

+47 470 35 718 

sm@horisontenergi.com 


About Horisont Energi: 
Horisont Energi (EURONEXT: HRGI) is a Norwegian clean energy company that
provides clean energy and carbon transport and storage services. The company
will transform gas, water and renewable energy into cost-leading clean ammonia
and hydrogen and offer CO2 transportation and storage services using proprietary
technology, paving the way for a low carbon economy. The company was founded in
2019 and is headquartered in Sandnes, Norway. www.horisontenergi.no 

You can follow us on:  

https://twitter.com/horisontenergi 

https://www.linkedin.com/company/horisontenergi/ 


About PGNiG Upstream Norway (PUN) and ORLEN  
PGNiG Upstream Norway ranks among the top 10 oil & gas companies operating on
the Norwegian Continental in terms of reserves and output. Its natural gas
production plays a vital role in securing the energy needs of Poland. PGNiG
Upstream Norway is part of the ORLEN Group, the largest energy company in
Central and Eastern Europe, whose operations span the power generation,
refining, petrochemical and retail sectors, among others. Its products are
available in 90 markets, reaching 100 million customers. ORLEN was the region's
first major energy company to announce a target to achieve carbon neutrality by
2050. By 2030, it will spend PLN 120 billion (almost USD 30 billion) on green
investments including offshore and onshore wind farms, photovoltaics, CCS,
biofuel, and green hydrogen production. https://www.orlen.pl/pl
https://norway.pgnig.pl/