Hydrogen Start-Up Stock Jumps. Horisont Energi and E.ON enter cooperation agreement

Horisont Energi AS focuses on producing blue hydrogen and blue ammonia in Norway. It is also involved in the provision of carbon storage services.

  • Horisont Energi AS was founded in 2019 and is headquartered in Sandnes, Norway
  • Top 3 shareholders: Føniks Innovasjon AS (32.33%), State Street Bank and Trust Comp (13.44%), Saga Pure ASA (11.62%)
  • According to the cooperation agreement Horisont Energi will be responsible for transport and sequestration of the carbon dioxide

Norwegian hydrogen start-up, Horisont Energi (EURONEXT: HRGI) and European energy company E.ON (EOAN) announced that they have entered into a strategic cooperation agreement for the development of European end-to-end carbon capture, transport, and storage service offering development of a carbon removal business, and production and value chains for clean hydrogen and ammonia.

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Along with the agreement, Horisont Energi will carry out a private placement directed at E.ON, pursuant to which E.ON will acquire a 25 percent stake in Horisont Energi. The private placement is planned to be completed end of January 2022, subject to certain conditions.

Currently, 90% of Horisont Energi’s 20 largest shareholders are from Norway. The largest shareholder from outside Norway is State Street Bank and Trust Comp, owning 13.44% of Horisont Energi shares.

We’re extremely excited to be joining forces with the leading European energy company E.ON to contribute to the energy transition in Europe. With this agreement, we are entering long-term strategic cooperation with E.ON, solidified by the company taking a 25 percent ownership stake in Horisont Energi. This will enable Horisont and E.ON to play a decisive role in the decarbonization of key industrial sectors in Europe, whilst scaling up and commercializing CCS and clean ammonia.

Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi

E.ON’s proposition in this market is to establish a comprehensive offering to our customers and partners by becoming a “one-stop-shop” for their decarbonization activities as part of our growth strategy. It will enable E.ON to deliver a full outsourcing proposition to decarbonize, from site-specific optimized carbon capture to secure long-term storage and clean hydrogen supply. Collaborating with Horisont Energi will enable us to be a first-mover in the future industrial carbon cycle business, which will be a key driver in European industrial and municipal decarbonization in the second half of the decade.

Patrick Lammers, member of the board of E.ON

According to the cooperation agreement between the two companies, E.ON will take responsibility for the carbon capture and liquefaction, whilst Horisont Energi will be responsible for the transport and sequestration of the carbon dioxide. The service will be offered to both existing and new customers of E.ON. The two companies will also mature and develop a business built upon carbon dioxide removal.

On December 15, 2021, the European Commission adopted a Communication on Sustainable Carbon Cycles, setting out how to increase carbon removals from the atmosphere. By the end of 2022, the Commission is to propose an EU regulatory framework for the certification of carbon removals based on transparent carbon accounting rules and requirements to monitor and verify the authenticity and environmental integrity of high-quality, sustainable carbon removals. In conjunction with this, the two companies will also develop business models on clean ammonia production and supply.

Carbon removals are vital in keeping our climate commitments within reach. Together with sharp emission reductions, we need sustainable solutions for removing and recycling carbon, which will make our economy more resilient and help us fight both the climate and biodiversity crises.

Frans Timmermans, Executive Vice-President for the European Green Deal

The collaboration of a hydrogen start-up and a large energy company is an example of which clean energy companies are worth seeking out and analyzing.

See More Norwegian Clean Energy Companies


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