SANDNES, NORWAY - 13 September 2021 - Horisont Energi (EURONEXT: HRGI) announced
today the submission of an application for a license to establish the Polaris
CO2 storage facility off the coast of Finnmark.
On 10 September, the Norwegian Ministry of Petroleum and Energy announced the
application process for a utilization permit for the storage of CO2 in an area
off the coast of Finnmark that is defined in the announcement.
The purpose of the permit application is to establish storage for CO2 that is
captured during the large-scale production of clean ammonia at the planned
Barents Blue plant in Hammerfest. The storage project has been given the
symbolic name "Polaris", after the lodestar.
"Ammonia is one of the world's most important industrial gases and it also has
great potential as an energy carrier within transport and power production. By
capturing CO2 during the production of ammonia and storing it safely under the
seabed, we open a new and climate-friendly market for the large amounts of
natural gas in the Barents Sea. The importance of clean ammonia to the green
transition and a low-carbon society can hardly be exaggerated. Therefore, this
license application announcement is not only important for us, but also for the
environment and for the region," says Bjørgulf Haukelidsæter Eidesen, CEO of
The planning of the Polaris CO2 storage has been ongoing since February 2020. In
November 2020, Horisont Energi signed a memorandum of understanding with Equinor
for the development of Barents Blue and Polaris. In May 2021, the two companies
entered a cooperation agreement for the development of Polaris. Last week,
Horisont Energi, Equinor and Vår Energi announced a cooperation agreement on the
development of the Barents Blue project. The Polaris license is expected to
cover the storage capacity needed for Barents Blue, including all potential
expansions, and additional storage capacity will be offered to third parties in
Norway and Europe.
"As part of the project, offshore solutions adapted to carbon storage will be
developed, and we have high ambitions with regards to minimizing the carbon
footprint of the operation of the carbon storage," says Haukelidsæter Eidesen.
Increasing demand for storage
There are a number of major CO2 capture projects underway in Europe, and many
European companies will clearly have a substantial need for CO2 storage. As of
today, there appears to be an unmet need for carbon storage in the market.
"The CO2 quota price has more than doubled in 2021 and has reached record
levels, most recently exceeding EUR60 per tonne. It is commonly assumed that the
price will continue to increase as the number of quotas declines in the coming
years. This will make CO2 storage increasingly commercially attractive, which is
an important driver for this market," says Haukelidsæter Eidesen.
Dan Jarle Flølo, CFO
+47 901 13 159
+47 41 18 84 82
About Horisont Energi
Energi Horisont Energi (EURONEXT: HRGI) is a Norwegian energy company that will
produce carbon neutral ammonia and provide CO2 storage. We pave the way for a
low-carbon economy by transforming natural gas and renewable energy into
cost-leading ammonia and offer transportation and proprietary technology storage
solutions for CO2. The company was founded in 2019 and is headquartered in
Sandnes, Norway. https://www.horisontenergi.no/
About Barents Blue
Barents Blue will provide Europe's first large-scale clean ammonia production.
Based on natural gas from the Barents Sea, it will include a world-scale clean
ammonia plant located in Finnmark in Northern Norway. Barents Blue will have a
production capacity of 3000 tons of ammonia per day once operational. During the
production process, carbon will be captured and transported by ship to the
Polaris reservoir for storage, with an estimated capacity in excess of 100
million tons below the seabed offshore Finnmark, which is equivalent to twice
Norway's annual greenhouse gas emissions.