Multiple offtake agreements for ammonia from Barents Blue plant
By on November 28, 2023
VNG: ammonia for German industry
German gas importer & wholesaler VNG will purchase CCS-based ammonia produced at Horisont Energi & Fertiberia’s Barents Blue plant in Hammerfest, Norway. The ammonia will be imported to Germany and made available to VNG’s industrial customers: either directly as ammonia, or as hydrogen via cracking. A long-term supply of 100,000 – 300,000 tonnes per year will start from 2028.
With this agreement, we are strengthening the German-Norwegian partnership in the energy sector. At the same time, we are taking another important step towards driving forward decarbonisation in Germany. The demand for blue ammonia will multiply in the coming decades.
Ulf Heitmüller, CEO of VNG AG in his organisation’s official press release, 10 Nov 2023
The agreement with VNG marks another leap forward in the development of Barents Blue as Europe’s largest clean ammonia plant. This partnership highlights the surging European demand for clean ammonia and hydrogen and solidifies our relationships with German partners as we continue to build a clean ammonia value chain on the continent.
Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi in VNG’s official press release, 10 Nov 2023
VNG already has several relevant partnerships locked in. Yara Clean Ammonia will supply ammonia from its Poppendorf plant to VNG at the Port of Rostock for further distribution. Rostock is also the site for an industrial-scale ammonia cracking feasibility study, led by VNG, Jera and EnBW. VNG is also engaged with another Norwegian company – Aker Horizons – to establish a full ammonia supply chain between Norway and Germany.
Barents NaturGass: ammonia for local demand in Norway
The Hammerfest-based gas supplier has signed a LoI for a long-term purchase agreement for up to 100,000 tonnes per year of ammonia from Barents Blue. Horisont and Barents NaturGass will assess market opportunities and technological feasibility, and also explore the possibilities of receiving public funding support from Enova, Innovation Norway. The announcement indicates that local demand for ammonia will be a focus, potentially as transportation fuel:
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.
Horisont CEO Bjørgulf Haukelidsæter Eidesen in his organisation’s official press release, 26 Oct 2023