Commercial progress for the Barents Blue project

Sandnes, Norway 11 February 2025: Horisont Energi (EURONEXT: HRGI) is progressing the commercial work and has now passed a milestone for the Barents Blue project by signing the first term-sheet (non-binding) for gas supply from the Snøhvit LNG facility at Melkøya in Northern Norway.

The term sheet (non-binding) is a key part of the commercial work required to reach the concept select milestone later this year and the first step towards securing the required gas supply for an annual production of 1 million tonnes of clean ammonia.

This term-sheet creates a good basis for the further commercial work towards the realisation of the Barents Blue project and the upcoming concept select milestone, say Co-CEO’s Bjørgulf Haukelidsæter Eidesen and Leiv Kallestad.

The next step for the gas supply agreements, following completion of the non-binding term-sheets, include negotiating Sales and Purchase Agreements (SPAs) targeted for completion in 2026. The Barents Blue project is mature from a technical, contractual and zoning perspective. It is an EU IPCEI Hydrogen project setting the highest environmental standards for clean ammonia production. As the project moves towards achieving the concept select milestone, when the first FEED study phase will be initiated, the key focus is to achieve 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.

About the Barents Blue project The Barents Blue project, being developed by Horisont Energi and Fertiberia, is a clean ammonia plant located at Markoppnes in Northern Norway. The annual production for the first phase of the project will be 1 million tonnes. With a best-in-class carbon capture rate above 99% this will be the most energy-efficient clean ammonia plant in the world, well-aligned with the EU taxonomy. Barents Blue has already secured sufficient power supply for the first phase of the project. The Barents Blue project is supported by a grant of NOK 482 million as part of the EU IPCEI hydrogen program, Hy2Use. The project targets final investment decision 2026 and estimated production start in 2029/2030.