| Work Detail |
Norwegian clean energy company Horisont Energi has signed the first non-binding term sheet to secure gas supply for its Barents Blue project, a clean ammonia plant located at Markoppnes in Northern Norway. According to Horisont Energi, the term sheet for gas supply from the Snøhvit LNG facility at Melkøya is a key part of the commercial work required to reach the concept select milestone later this year and the first step to ensure the required gas supply for an annual production of 1 million tonnes of clean ammonia. Following completion of the non-binding term sheets, the company will take the next step, including negotiating sales and purchase agreements (SPAs) targeted for completion in 2026. The Norwegian company added that the Barents Blue project is mature from a technical, contractual, and zoning perspective. Moving forward, the project aims for the concept select milestone when the first front-end engineering and design (FEED) study will be initiated, with the key focus on achieving the same level of maturity for the commercial work. Towards this end, the project has been working on commercial agreements for the supply of gas, offtake of clean ammonia, and storage of CO2, Horisont Energi said. The Barents Blue project, being developed by Horisont Energi and Fertiberia, is projected to reach 1 million tons of annual production in the first phase for which a sufficient power supply has been secured. Said to have the “best-in-class” carbon capture rate (above 99%), the project is expected to be the most energy-efficient clean ammonia plant in the world. The Barents Blue project is supported by a grant of NOK 482 million (around $47.8 million) as part of the EU IPCEI hydrogen program, Hy2Use.?The project targets a final investment decision (FID) in 2026 and estimated production start in 2029/2030. The collaboration with Fertiberia will end on February 28, 2025, and Horsiont Energi is working to onboard additional partners on the project as part of the strategic review that the company announced in September 2024. |
