Norway – Horisont Energi has signed a letter of intent (LoI) with VNG Handel & Vertrieb GmbH (VNG), a wholly owned subsidiary of the German energy company VNG AG, regarding the offtake of clean ammonia from the Barents Blue project in Hammerfest in Northern Norway – Europe’´’s largest clean ammonia plant project.
The goal of the agreement is to make clean ammonia available to VNG H&V’s customers, particularly in the industrial sector, either directly or in the form of hydrogen. The agreement sets out a long-term partnership for clean ammonia supply targeting a quantity of 100,000-300,000 tons per year starting from 2028, corresponding to 10%-30% of the capacity at the planned Barents Blue plant.
Barents Blue project
The Barents Blue project will use blue ammonia technology to produce clean ammonia with a 99% CO2 capture rate. Blue ammonia is produced using natural gas and steam, and the CO2 emissions are captured and stored underground.
The Barents Blue project has the potential to significantly reduce CO2 emissions from the ammonia industry. Ammonia is a key ingredient in fertilizer, and its production is currently responsible for approximately one percent of global CO2 emissions. Clean ammonia can also be used as a carbon-free fuel in shipping and other industries.
The agreement provides Horisont Energi with a major customer for its clean ammonia and helps to secure the financing of the project.