Norwegian clean energy company Horisont Energi has signed a Letter of Intent (LoI) with its compatriot Barents NaturGass for a long-term purchase agreement of up to 100,000 tons annually of clean ammonia from Horisont Energi’s and Fertiberia’s Barents Blue plant.
Under the LoI, the two companies will assess the market opportunities and review technologies required to develop clean ammonia as an energy source for the industry in Northern Norway, Horisont Energi said, adding that they will also explore the possibilities of receiving public funding support from Enova, Innovation Norway or other relevant funding providers.
“Although the main market for clean ammonia will be on the European continent, we also intend to serve local demand for clean ammonia with a filling station at the planned Barents Blue plant. This is the first agreement for local delivery of clean ammonia in Northern Norway, enabling the build-up of a clean energy industry and emission-free last-mile transport in the region,” CEO Bjørgulf Haukelidsæter Eidesen in Horisont Energi, said.
Once operational, the Barents Blue project, located in Finnmark in Northern Norway, is expected to become Europe’s largest clean ammonia production plant. It is currently being planned for an annual production level of one million tons.
The project targets deliveries to the European ammonia market and is supported by a grant of NOK 482 million (around $47.8 million) under the EU IPCEI hydrogen program.
The Barents Blue concept is to make ammonia from natural gas from the Barents Sea, capture the CO2 and store it under the seabed.
To note, the Horisont Energi-Barents NaturGass offtake agreement follows the signing of a Barents Blue joint development agreement between Horisont Energi and Fertiberia earlier in 2023.