Horisont Energi Barents Blue project awarded $53 million Enova grant

Horisont Energi AS (EURONEXT: HRGI) announced today that Barents Blue, the EU’s first world-scale clean ammonia plant, has been awarded a $53.46 million (NOK 482 million) grant from Enova SF to participate in the Important Projects of Common European Interest (IPCEI) Hydrogen, subject to final approval by the EFTA Surveillance Authority (ESA).

The Barents Blue project is a clean ammonia project in Finnmark, Northern Norway, including planned CO2 storage offshore. Once operational, Barents Blue will have a production capacity of 3000 tons of ammonia per day. During the production process, carbon will be captured and transported by ship for storage in a reservoir below the seabed Polaris, with an estimated capacity of 100 million tons. This is equivalent to twice Norway’s annual greenhouse gas emissions.

The European Union’s IPCEI program will provide Horisont Energi with a unique opportunity to link the Barents Blue project to other projects and value chains in the 23 participating European countries to create positive spillover effects and benefit from possible knowledge transfer, financing, market size, and other economies of scale.

Enova’s NOK 482 million grant is subject to approval by the EU Commission and ESA. Should the grant be approved, Horisont Energi, with partners Equinor ASA and Vår Energi AS, will proceed to the FEED phase of the Barents Blue project in 2022. Construction work is planned to take place from 2023 to 2025, and the plant is expected to be in operation around the turn of the year 2025-26.

Ammonia has numerous industrial applications, including fertilizer production, and is currently the world’s second-most used industrial gas, with an established infrastructure for shipping across the globe. In the future, ammonia is also expected to be used as a climate-neutral fuel, especially in the maritime industry and for climate-neutral power production.

Hydrogen is an environment and climate-friendly energy carrier. Thus, hydrogen technology holds significant decarbonization potential for the industry, transport, and energy sectors. It allows emission-free production, storage, and utilization of energy. Developing hydrogen technology and markets is a key element of the EU’s plan to become the first climate-neutral continent by 2050.

IPCEI was established to accelerate this development. Norway is part of IPCEI Hydrogen, and Enova manages the participation of Norwegian companies in the initiative. Enova received 25 applications, of which three were selected, including Horisont Energi.

Author: KS

Source: Horisont Energi AS

Topic: Finance News | Ammonia News