Horisont Energi, a Norwegian clean energy company, is making significant strides in the commercial development of its Barents Blue project, a large-scale clean ammonia facility planned for Markoppnes, Northern Norway. The company has signed its first non-binding term sheet to secure natural gas supply from the Snøhvit LNG facility at Melkøya, marking a crucial milestone toward the project's realization. This agreement is a key component of the commercial groundwork necessary to reach the concept select phase later this year, ensuring the availability of the required gas supply for an estimated annual production of 1 million tonnes of clean ammonia.

Following the completion of these non-binding agreements, Horisont Energi will advance to the next stage by negotiating sales and purchase agreements (SPAs), with a targeted completion date set for 2026. The company has emphasized that the Barents Blue project is already highly mature from a technical, contractual, and zoning perspective. The focus now shifts to aligning the commercial aspects to the same level of readiness, a process that will be solidified through the upcoming concept select phase and the initiation of the first front-end engineering and design (FEED) study.

To support the successful execution of the project, Horisont Energi is actively working on securing essential commercial agreements, including those related to the supply of natural gas, offtake of clean ammonia, and storage of captured CO2. Developed in collaboration with Fertiberia, a leading European ammonia producer, the Barents Blue project is poised to become one of the world’s most advanced clean ammonia facilities. The first phase is expected to achieve an annual production capacity of 1 million tonnes, with a sufficient and reliable power supply already secured.

A defining feature of the Barents Blue project is its industry-leading carbon capture efficiency, exceeding 99%. This high capture rate positions the plant as the most energy-efficient clean ammonia production facility globally, reinforcing Norway’s commitment to decarbonization and clean energy innovation. The project has received strong financial support, including a NOK 482 million (approximately $47.8 million) grant from the European Union’s Important Projects of Common European Interest (IPCEI) under the Hy2Use hydrogen program.

Looking ahead, Horisont Energi aims to reach a final investment decision (FID) by 2026, with production slated to begin between 2029 and 2030. Once operational, the Barents Blue facility will play a critical role in reducing emissions from ammonia production, contributing to global efforts in sustainable energy development. By leveraging Norway’s expertise in clean energy solutions, the project is set to create economic opportunities while solidifying the country's leadership in the transition to a low-carbon future.