Horisont Energi, Neptune Energy and E.ON sign MoU for realization of a European CCS value chain
20. february 2023
20. february 2023
SANDNES, Norway 20 February 2023 – Horisont Energi (EURONEXT: HRGI), a Norwegian clean energy company, and Neptune Energy, an independent global E&P company, have today signed a Memorandum of Understanding (MoU) with the international energy major E.ON with the aim to develop a European CCS value chain.
Through this MoU Horisont Energi will strengthen the existing cooperation with E.ON and by bringing in Errai partner Neptune Energy, Horisont Energi will expand the cooperation towards a jointly development of a European carbon capture and storage (CCS) value chain. The three energy companies will take a strong position in the CCS market, accelerating the transition to carbon neutrality.
The MoU covers several areas such as the development, financing, and funding of a complete value chain for CO2 handling. If Horisont Energi´s and Neptune Energy´s application for CO2 exploration for the Errai project is awarded, the intention is that this will be the first joint project.
“Our cooperation with E.ON and Neptune Energy is already strong. Through this MoU we are expanding the cooperation to include three experienced energy companies. Together we will strengthen our position to establish a European CCS value-chain business. In case of license award of Errai, a possible direct participation by E.ON would further strengthen the commercial basis for this project”, said Bjørgulf Haukelidsæter Eidesen, CEO at Horisont Energi.
Errai is planned as the first commercial CO2 project in Norway and will represent an important step in industrialising carbon capture and storage (CCS) as a competitive service. Bringing in E.ON will strongly contribute to linking CO2 projects on the Norwegian Continental Shelf (NCS) with development of the CO2 removal market in Europe. Pending legislative changes, the cooperation could furthermore lead the way for commercial carbon removal market based on sequestration of biogenic CO2.
Several industries cannot be fully electrified and will therefore depend on CCS to meet net zero emissions requirements and the fulfilment of the 1.5-degree target by 2050. Such industries are situated across Europe and include production of steel, cement, various chemicals, pulp, and paper. A full CCS value-chain will bring the solution to the customers offering a one-stop-shop for off-take of CO2 and permanent storage in safe sub-sea reservoirs.
Neptune Energy’s managing director in UK & Norway, Odin Estensen said “A partnership with energy major E.ON will strengthen our ambition in establishing Norway’s first commercial carbon storage project. This could be a key contributor to Neptune’s 2030 goal of storing more carbon than is emitted from our operations and from use of the oil and gas products we sell”.
The Errai project was initiated by Horisont Energi in 2021. In December 2022 Horisont Energi and Neptune Energy submitted a joint application for the acreage identified in the Errai project. In the application Neptune Energy has been proposed as operator.
The Errai project is planned with an injection capacity of 4-8 million tonnes of CO2 annually in the first development phase, with potential for more in later phases. The project includes an onshore terminal for intermediate CO2 storage and processing, prior to transport for permanent storage in an offshore reservoir.
As a part of the work to further develop the project, Horisont Energi has obtained a long-term lease option for a site suitable for a CO2 terminal at Gismarvik in Rogaland. The landowner, Haugaland Næringspark, possesses one of Norway’s largest industrial areas, with critical infrastructure including access to fibre, electricity, water, sewage, and a deep-sea quay already in place.
In November 2022 Horisont Energi signed a letter of intent with E.ON concerning for sequestration services of more than one million tonnes of CO2 planned to originate from E. ON’s European customer by 2030, starting from 2027 with gradual increase.
The three companies contemplate to cooperate as partners in different projects, but in case of license award to Horisont Energi and Neptune Energy, Errai could be the first possibility for E.ON to become a partner (subject to government approval).
The announcement of license award or not for ErraI to the applicants is expected in the first half of 2023.
About Horisont Energi
Horisont Energi (EURONEXT: HRGI) is a Norwegian clean energy company that will provide clean energy and carbon transport and storage services. The company will transform gas into cost-leading ammonia and hydrogen and offer CO2 transportation and storage solutions using proprietary technology, paving the way for a low carbon economy. The company was founded in 2019 and is headquartered in Sandnes, Norway.
Neptune Energy Norge AS
Neptune Energy is an independent global E&P company with activities in the North Sea, North Africa, and Southeast Asia. The company had a production of 130,000 net barrels of oil equivalent per day in 2021 and 2P reserves of 604 million barrels of oil equivalent as of December 31, 2021. Neptune aims to store more carbon than is emitted from the operation and use of the products sold by 2030. Founded by Sam Laidlaw, the company has three strategic investors: China Investment Corporation, The Carlyle Group, and CVC Capital Partners.
Bjørgulf Haukelidsæter Eidesen, CEO
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