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Released September 28, 2021 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--A deal to build Europe's first large-scale production facility for blue ammonia has been struck between carbon technology and capture specialist Horisont Energi (EURONEXT: HRGI) and Norway's largest oil and gas companies, Equinor (NYSE:EQNR) (Stavanger) and Vår Energi (Sandnes).
The Barents Blue project will use natural gas from the Barents Sea and include a large-scale clean ammonia plant located in Finnmark in northern Norway. Barents Blue will have a production capacity of 3,000 tonnes of ammonia per day once operational. Ammonia is a key industrial gas used globally in the fertilizer and chemical sector, as well as being a very efficient hydrogen carrier, which makes it one of the most promising fuels for the decarbonisation of parts of the maritime sector. 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 tonnes below the seabed offshore Finnmark, which is equivalent to twice Norway's annual greenhouse gas emissions.
Industrial Info is tracking 10 projects worth more than US$420 million under the Barents Blue umbrella, ranging from the blue ammonia plant and a 600-tonne per day hydrogen reformer plant to a new gas pipeline between Hammerfest and Markoppneset and associated projects for the Polaris permanent CO2 storage facility. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of project reports.
"The Barents Blue ammonia plant is planned to consist of three process trains which may be developed simultaneously or sequentially including all required utilities for producing blue ammonia," explained Bjørgulf Haukelidsæter Eidesen, chief executive officer, Horisont Energi. "Each train calls for a facility producing approximately 1 million tons of pure ammonia per year, potentially permanently storing 2 million tons of CO2 annually, making Barents Blue one of Norway's largest environmental projects."
He added: "This agreement means that we are now moving forward in the Barents Blue project with two industrial partners with a strong local presence. They have a long-term perspective and bring extensive experience with large and complex technical projects. This is a major step forward for Barents Blue."
Horisont Energi has also applied to the Norwegian Ministry of Petroleum and Energy for a license to establish the Polaris CO2 storage facility off the coast of Finnmark. The Polaris license is expected to cover the storage capacity needed for Barents Blue, including all potential expansions, and additional storage capacity will be offered to third parties in Norway and Europe. Eidesen pointed to the commercial viability of the project.
"The CO2 quota price has more than doubled in 2021 and has reached record levels, most recently exceeding 60 euro (US$70) per tonne. It is commonly assumed that the price will continue to increase as the number of quotas declines in the coming years. This will make CO2 storage increasingly commercially attractive, which is an important driver for this market."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The Barents Blue project will use natural gas from the Barents Sea and include a large-scale clean ammonia plant located in Finnmark in northern Norway. Barents Blue will have a production capacity of 3,000 tonnes of ammonia per day once operational. Ammonia is a key industrial gas used globally in the fertilizer and chemical sector, as well as being a very efficient hydrogen carrier, which makes it one of the most promising fuels for the decarbonisation of parts of the maritime sector. 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 tonnes below the seabed offshore Finnmark, which is equivalent to twice Norway's annual greenhouse gas emissions.
Industrial Info is tracking 10 projects worth more than US$420 million under the Barents Blue umbrella, ranging from the blue ammonia plant and a 600-tonne per day hydrogen reformer plant to a new gas pipeline between Hammerfest and Markoppneset and associated projects for the Polaris permanent CO2 storage facility. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of project reports.
"The Barents Blue ammonia plant is planned to consist of three process trains which may be developed simultaneously or sequentially including all required utilities for producing blue ammonia," explained Bjørgulf Haukelidsæter Eidesen, chief executive officer, Horisont Energi. "Each train calls for a facility producing approximately 1 million tons of pure ammonia per year, potentially permanently storing 2 million tons of CO2 annually, making Barents Blue one of Norway's largest environmental projects."
He added: "This agreement means that we are now moving forward in the Barents Blue project with two industrial partners with a strong local presence. They have a long-term perspective and bring extensive experience with large and complex technical projects. This is a major step forward for Barents Blue."
Horisont Energi has also applied to the Norwegian Ministry of Petroleum and Energy for a license to establish the Polaris CO2 storage facility off the coast of Finnmark. The Polaris license is expected to cover the storage capacity needed for Barents Blue, including all potential expansions, and additional storage capacity will be offered to third parties in Norway and Europe. Eidesen pointed to the commercial viability of the project.
"The CO2 quota price has more than doubled in 2021 and has reached record levels, most recently exceeding 60 euro (US$70) per tonne. It is commonly assumed that the price will continue to increase as the number of quotas declines in the coming years. This will make CO2 storage increasingly commercially attractive, which is an important driver for this market."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
