Horisont Energi (Oslo: HRGI.OL) announced the submission of an application for a license to establish the Polaris CO₂ storage facility off the coast of Finnmark (Norway).
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 ammonia production 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 the region.” – Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi.
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.
Increasing demand for storage
There are a number of major CO₂ capture projects underway in Europe, and many European companies will have a substantial need for CO₂ storage. As of today, there appears to be an unmet need for carbon storage in the market.
Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi: “The CO₂ quota price has more than doubled in 2021 and has reached record levels, most recently exceeding €60 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.”
Source: Horisont Energi