Horisont Energi has inked a Letter of Intent (LoI) with VNG Handel & Vertrieb GmbH, a subsidiary of German energy giant VNG AG. This collaboration revolves around the offtake of clean ammonia from the Barents Blue project, poised to be Europe’s largest clean ammonia plant, situated in Hammerfest, Northern Norway.
VNG H&V, a major German gas importer, is set to purchase clean ammonia from Horisont Energi with the goal of making it available to industrial customers, either in its ammonia form or as hydrogen. The LoI outlines a long-term partnership targeting an annual supply of 100,000-300,000 tons of clean ammonia from 2028 onwards, constituting a substantial share of the Barents Blue plant’s capacity.
The Barents Blue project, coupled with the Polaris CCS project, introduces clean ammonia with an impressive 99% CO2 capture rate, significantly reducing its carbon footprint compared to traditional production methods. This aligns with the European Commission’s ‘Fit for 55’ initiative, aiming to slash emissions by 55% in 2030.
Conventional ammonia production currently contributes to around 1% of global CO2 emissions. The transition to clean ammonia is pivotal in the European Commission’s strategy to lessen the EU’s reliance on fossil imports. Clean ammonia is a linchpin in the broader ambition to cut emissions by 55% by 2030.