Horisont Energi chooses Hammerfest, Norway, as site for Europe’s first large-scale carbon-neutral ammonia plant

SANDNES, NORWAY - June 3, 2021 - Horisont Energi (EURONEXT: HRGI) takes an important step in the Barents Blue project with the selection of Markoppneset, in the municipality of Hammerfest in northern Norway, as the preferred site for the company's planned plant for production of ammonia with carbon capture.

This preferred site will form the basis for the concept studies that will be performed until the end of the year for the design of the entire facility. Once the studies have been completed, the site selection will be definite.

Three sites in Hammerfest and Nordkapp municipalities have been evaluated since January, after having narrowed down the wide range of alternative locations that were considered in an earlier phase. The other sites under consideration are Rypklubbeidet in Hammerfest municipality and Veidneset in Nordkapp municipality. All three sites are zoned for industrial activity and each has its own qualities.

'I'm happy that the project is keeping up the pace and is progressing according to plan, and I appreciate the excellent collaboration with both of the relevant municipalities and the strong local support for the project. Moving forward, we will prioritize a close dialogue with the local community.'
Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi.

For the concept phase that runs until the end of the year, Horisont Energi will include one of the other two sites as an alternative solution if insurmountable challenges are identified at the preferred site during the concept studies. It has not yet been decided which alternative site will be included.

'Regardless of which site is selected, Finnmark and Troms county will host a new industrial facility for the future,'
Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi

In choosing the site, the potential for expansion, and thus the implementation of several 'Barents Blue projects', has been taken into consideration. Horisont Energi contemplates two additional construction stages at the site, with related production increases.

Climate-friendly ammonia

The objective is to construct Europe's first large-scale factory for the production of so-called 'blue' ammonia from natural gas, which means that CO2 is captured during the production process and stored. The storage will be done by transporting all CO2 offshore where it is injected in a large geological reservoir under the seabed.

The proposed plant will offer a climate-friendly market outlet for a significant part of the natural gas from the Barents Sea.

Ammonia has numerous industrial applications, including in fertilizer production, and is currently the world's second most used industrial gas, with an established infrastructure for shipping throughout the globe. In the future, ammonia is also expected be used as a climate-neutral fuel, especially in the maritime industry and for climate-neutral power production.

'We're convinced that this will be a facility for the future. It will have a very low carbon footprint with over 99 percent CO2 capture rate and very low emissions in general, combined with market-leading energy efficiency. The facility will have a very high safety level. It will also be constructed to have very low noise levels and limited light pollution. We will use materials which can be recycled and chemicals with residual products which can be utilized as raw materials for other production processes. In this way, Horisont Energi will ensure that the plant is designed according to circular economy principles to the greatest extent possible. The plant will set the standard for pure hydrogen and ammonia production. This is also the reason why the environmental state agency Enova has chosen to support the project in the coming phase with NOK 10 million,'
Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi

Further process

The selected site will now form the basis for concept studies, which will be carried out with Horisont Energi's suppliers over the next half year. The site selection is expected to be finalized in connection with the concept decision towards the end of the year.

The construction work is planned to take place from 2022 to 2025 and the plant is expected to be in operation in 2025.

'The plant will create many local jobs, both in the design and operational phases. Horisont Energi is in dialogue with parties who are exploring industrial projects at various locations in Norway based on the ammonia our plant will produce.'
Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi

About Horisont Energi

Horisont Energi (EURONEXT: HRGI) is a Norwegian carbon tech company that provides clean energy and carbon storage services. The company transforms gas into cost-leading ammonia and hydrogen, and offers 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. https://www.horisontenergi.no/

About Barents Blue

Barents Blue will provide Europe's first large-scale clean ammonia production. Based on natural gas from the Barents Sea, it will include a world-scale clean ammonia plant located in Finnmark in Northern Norway. Barents Blue will have a production capacity of 3000 tons of ammonia per day once operational. During the production process, carbon will be captured and transported by ship to the Polaris reservoir for storage, with an estimated capacity in excess of 100 million tons below the seabed offshore Finnmark, which is equivalent to twice Norway's annual greenhouse gas emissions. Currently entering the concept phase, an investment decision for Polaris and the Barents Blue project is expected towards the end of 2022.

Further information:

Investor relations
Dan Jarle Flølo, CFO
+47 901 13 159
[email protected]

Media Relations
Marianne Stigset
+47 41 18 84 82
[email protected]

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