Horisont Energi - Carbon Capture & Hydrogen

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:  

factpages.npd.no/en/bsns_arr_area/...iew/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.  


Quelle: Euronext

in the European Commission’s ambition to reduce the EU’s dependency on fossil
imports. Clean ammonia is also a crucial element in the ‘Fit for 55’ ambition to
reduce emissions by 55 percent in 2030 compared to 1990 levels.

VNG has held reliable relationships with Norwegian energy companies for over 30
years and will continue to work closely with them in the future. "With this
agreement, we are strengthening the German-Norwegian partnership in the energy
sector. At the same time, we are taking another important step towards driving
forward the decarbonisation of Germany. The demand for blue ammonia will
multiply in the coming decades, both as a hydrogen carrier and to decarbonise
fertilisers, shipping, and other industries," added Ulf Heitmüller, CEO of VNG
AG.

Combined with the Polaris CCS project, Barents Blue will offer clean ammonia
with a 99% CO2 capture rate and a correspondingly low carbon footprint compared
to conventional production. Horisont Energi targets a final investment decision
for the 1 million tonnes plant in 2024/2025, with estimated production start in
2028.

The agreement with VNG comes after Horisont Energi and Fertiberia recently
signed a joint development agreement for the Barents Blue project, and the
announcement in September that PIGNiG Upstream Norway intends to join Horisont
Energi as an operating partner in the Polaris CCS storage license. The plan is
for Polaris to offer the Barents Blue CO2 storage for its captured carbon.

Horisont Energi has already secured sufficient power supply for the first stage
of the Barents Blue project, which has secured NOK 482 million of funding as a
grant from Enova, the Norwegian government’s enterprise to promote a faster
transition to low-emission society. The funding is part of the IPCEI hydrogen
program, Hy2Use.

Quelle: Euronext

creating synergistic benefits for the entire industrial complex in Finnmark.

Financial result:
• Net profit (loss) of MNOK (39.9) compared to MNOK (58.7) in Q2 as the company
reduced its spending after the termination of the Errai project and
significantly reduced costs for both the Barents Blue and CCS activities.
• The cash position of MNOK 243,3 remains satisfactory and supports current
activities going forward.
• Horisont Energi will explore additional sourcing of capital to fund projects
when key milestones have been successfully met for the projects.

Subsequent Events:
• LOI for sale of ammonia to VNG, 100’- 300’ tonnes/year.
• LOI for sale of ammonia to Barents Naturgass 100’ tonnes/year.
• MOU with Koole Terminals for the development of CCS opportunities.
• Planned changes in the legal structure of HRGI. Horisont plans to establish
three sub-holding companies by business area, which will own the
project-specific companies. The approval of the new legal structure will be
requested at an Extraordinary General Meeting later this year.

Please find the Q3 2023 report attached. You can also find the report on our
webpage www.horisontenergi.no

For information please contact:
Leiv Kallestad, CFO
+47 95895661
leiv.kallestad@horisontenergi.com

Siri Melberg, Head of branding & communication
+47 47035718
sm@horisontenergi.com


Quelle: Euronext

Rotterdam and other European countries, as part of a European CCS value chain.

The intention for a Gismarvik CO2 terminal is to become an injection hub for CO2
before permanent storage at Horisont Energi’s or at other carbon storage
locations on the Norwegian Continental Shelf. With an anticipated maximum annual
capacity of 24 million tonnes, following design maturation and development, the
Gismarvik CO2 terminal has the potential to function as intermedia storage for
several CO2 storage projects. A fit-for-purpose CO2 injection solution and
system design has already been developed for the offshore part. Horisont Energi
has developed plans and started permitting for such a terminal covering
offloading from ships, temporary storage, process, and compression prior to
pipeline transport to subsea reservoirs for sequestration.

- “Our ambition is to build a carbon capture and storage value chain in Europe
together with our partners. A proposed CO2 terminal in Rotterdam is intended to
play a central role in this context as the gateway from Europe to Norway's CCS
market, both in terms of existing and new carbon storage licences. Koole
Terminals' strong customer base and experience in operating major liquid bulk
terminals in central ports of Europe is anticipated to aid in contributing to
acceleration of the establishment of the CCS value chain. We look forward to
continuing our close collaboration,” says Bjørgulf Haukelidsæter Eidesen, CEO of
Horisont Energi.

The Port of Rotterdam is the major energy hub for Western Europe, as around 13
percent of the total energy demand in Europe enters the EU through this Port.

- "Material progress has been made in enhancing our potential CO2 intermediate
storage capabilities at Rotterdam since our collaboration commenced. We
recognise the synergies in engaging in the potential joint development of the
Gismarvik CO2 terminal in Norway, drawing upon our extensive expertise in
managing terminals and logistics.”, says John Kraakman, CEO of Koole Terminals.

Horisont Energi and Koole Terminals also expect to explore certification
solutions to develop fully auditable comingled inventory control, emission
certification, traceability management, and trading solutions for CO2.

Horisont Energi and Koole Terminals extended the scope of cooperation to cover
clean ammonia in December 2022. The Parties share common values and are strongly
committed to working towards sustainability, decarbonization, and the
fundamental role of clean energy.

Quelle: Euronext