Horisont Energi publishes the Q2 report for 2023

SANDNES, Norway 24 August 2023: Horisont Energi (EURONEXT:HRGI) today publishes the Q2 report 2023.

Horisont Energi has progressed projects and partnerships during the second quarter and continued to develop the organisation. The company’s cash position is satisfactory, and ensures that on this basis, planned operating activities are funded until the end of 2024.

The Barents Blue project has progressed on commercial matters, including dialogue on gas purchase agreements and the ammonia sales workstream. Horisont Energi has signed a new joint agreement with the Spanish ammonia specialist Fertiberia to develop the Barents Blue project, Europe’s largest clean ammonia plant. Before the summer, we also successfully secured a sufficient power supply for the first stage of the project.

“Fertiberia shares our vision of developing clean ammonia projects on an industrial scale and has ambitious plans to accelerate the transition to carbon neutrality. With an objective to lead the development of Europe’s clean ammonia market, Fertiberia will be a strong partner for Horisont Energi in the continued development of Barents Blue, and we look forward to work with a competent and dedicated team,” says Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi.

Within the carbon capture and storage business, Horisont Energi signed a new cooperation agreement with E.ON to develop a European value chain for CCS and joint efforts to access carbon storage capacity on the Norwegian Continental Shelf, strengthening the agreement previously announced.

“Having Fertiberia and energy major E.ON as partners in clean ammonia and CCS respectively marks important milestones for Horisont Energi and means that we are well positioned to accelerate the transition to carbon neutrality”, says Haukelidsæter Eidesen.

Highlights Q2 2023:

– Prolonged partnership with E.ON to develop European CCS value chain

– Secured power supply for the Barents Blue project, representing an important milestone for the development and realisation of the project

– Maturing the Gismarvik CO2 terminal project for potential 20-25 million tonnes of annual capacity, including third-party storage

– Started the development of a portfolio of carbon storage licenses with the goal of taking equity positions in storages which can be connected to the Gismarvik CO2 terminal

– Several steps taken to strengthen the governance and align the organisation with changes to the Board and Management team

Financial result:

Net loss of MNOK 58.7 down from MNOK 75.1 in Q1 primarily as a result of the termination of the Errai project. The H1 loss of MNOK 133.8 was MNOK 67.8 higher than last year as it includes costs for both the Barents Blue and Errai projects, whilst the company last year had lower project costs and lower employee cost.

The cash at the end of the quarter was MNOK 267.7. The cash burn has been high during the quarter and the first half of the year due the project activities. The cash position is however satisfactory for planned operating activities going forward. Planned activities do not require substantial external support, and the cash burn will therefore be lower, which ensures that the company on this basis is funded until the end of 2024.

Subsequent Events:

– A joint development agreement was signed with Fertiberia 23 August for realisation of the Barents Blue project.