Horisont Energi has signed a Letter of Intent (LoI) with Barents NaturGass AS for a long-term purchase agreement of up to 100,000 tpy of clean ammonia from Horisont Energi’s and Fertiberia’s Barents Blue plant.

Under the LoI the two companies will assess the market opportunities and review technologies required to develop clean ammonia as an energy source for the industry in Northern Norway. The companies will also explore the possibilities of receiving public funding support from Enova, Innovation Norway, or other relevant funding providers.

“Although the main market for clean ammonia will be on the European continent, we also intend to serve local demand for clean ammonia with a filling station at the planned Barents Blue plant. This is the first agreement for local delivery of clean ammonia in Northern Norway, enabling the build-up of a clean energy industry and emission-free last-mile transport in the region,” said CEO Bjørgulf Haukelidsæter Eidesen in Horisont Energi.

Barents NaturGass is the leading reseller and distributor of LNG and liquefied biogas in the Barents region, with an interest to expand its product portfolio into clean ammonia and CO₂ capture once this becomes available in the region.

The Barents Blue plant is being planned for a production level of 1 MMtpy, making it Europe’s first large-scale clean ammonia plant. The offtake agreement follows the signing of a joint development agreement between Horisont Energi and Fertiberia earlier this year. In June, Horisont Energi secured sufficient power supply for the first stage of the project.

The Barents Blue project has received a conditional grant of about $43 MM from Enova, as part of the IPCEI Hydrogen program.