Moscow, February 1 - Neftegaz.RU. Operator Horisont Energi announced Fertiberia as a new partner to join the Barents Blue project. The previous partners Equinor and Vår Energi leave the project as the cooperation agreement expired on 31 January.
The Barents Blue concept is to make ammonia from natural gas from the Barents Sea, capture the CO2 and store it under the seabed.
The Polaris CO2 storage under the Barents Sea was selected as the CO2 storage solution for the Barents Blue project, and it has had the same partners as for the Barents Blue project.
Consequently, Equinor has also concluded to not take further part in the Polaris CO2 storage project.
Grete Tveit, senior vice president Low carbon solutions, in Equinor said:
- we are pleased to see that Horisont Energi will continue to mature the Barents Blue project with a new partner and build on the progress and experiences from our partnership.
- I wish to thank the Barents Blue operator Horisont Energi and our partner Vår Energi for the collaboration we have had in the project.
Equinor remains positive to explore gas supply solutions from Hammerfest LNG to the Barents Blue project following the changes in the partnership.
Equinor has several hydrogen and CCS projects in different phases in Norway and in other markets. In Norway, the Northern Lights CO2 transport and storage project, part of the Longship project, is already under construction and on track to be ready to receive CO2 in 2024.
Recently, Equinor and RWE announced that the companies have agreed to work together to develop large-scale value chains for low carbon hydrogen, with a production facility in Norway and an export pipeline to Germany.
By 2030, Equinor has an ambition that 50 per cent of the company’s gross investments will be dedicated to renewables and low carbon solutions, such as CCS and hydrogen.
This decision will not impact Vår Energi’s position in the Barents Sea, and the work to find a comprehensive gas export solution continues.
In recent years, Vår Energi has investigated various alternatives for exporting the gas resources discovered in Alke and Goliat, west of Hammerfest. The company decided to join the Barents Blue collaboration project in 2021, following efforts initiated by Equinor and Horisont Energi to establish an ammonia factory in Hammerfest, including CO2 capture and storage. The purpose was to explore tie-in of the Alke and Goliat gas resources to Barents Blue while also contributing to a more comprehensive solution for the region overall.
The partnership has worked actively to reach a concept decision, but the overall situation has led to the decision to seek other solutions. Vår Energi EVP Project Development & SCM, Atle Reinseth says:
- We have great faith in the Barents Sea as a petroleum province.
- However, after thorough assessment of the project and our overall portfolio, we have concluded that it is no longer appropriate to proceed with the Barents Blue concept.
- Development of the proven resources in the region, including Goliat, Alke and Lupa, will require an export solution with greater capacity than what we deem realistic within the scope of the project.
- We would like to thank Equinor and Horisont Energi for the collaboration and wish the operator all the best in further maturing Barents Blue.
The Barents Blue project is Europe’s largest clean ammonia production plant located in Finnmark, in Northern Norway. Once the first train is operational, Barents Blue is planned to produce 1 million tonnes of clean ammonia and it will be the most energy efficient blue ammonia plant in the world with best-in-class carbon footprint and well aligned with the EU taxonomy.
The Barents Blue project is supported by a grant of NOK 482 million under the EU IPCEI hydrogen program, which is not affected by the changes in the partner consortium. The IPCEI award confirms the big potential and innovative nature of the Barents Blue project.
Equinor remains positive to explore gas supply solutions to the Barents Blue project from Melkøya following the changes in the partner consortium. Horisont Energi will invite new partners into the Polaris CO2 storage licence, including a qualified operator. A new licence group will bring the project forward to a submission of plan for development. The changes in the licence group will be coordinated with relevant authorities.
