The term sheet is a key part of the commercial work required to reach the concept select milestone later this year and “a good basis” towards the realization of the Barents Blue project, according to Bjørgulf Haukelidsæter Eidesen and Leiv Kallestad, Co-CEOs of Horisont Energi.
Following the completion of non-binding term sheets, the next step for the ammonia sales agreements is to negotiate sales and purchase agreements (SPAs), which are targeted for completion in 2026.
Located at Markoppnes in northern Norway, Horisont Energi’s Barents Blue project is a clean ammonia plant with the annual production for the first phase planned to be 1 million tonnes. The plant is said to have the best-in-class carbon capture rate above 99%, and is expected to be the most energy-efficient clean ammonia plant in the world.
According to the developer, this EU IPCEI Hydrogen project is mature from a technical, contractual and zoning perspective and has already secured sufficient power supply for the first phase.
As the project moves towards achieving the concept select milestone, when the first FEED study phase will be initiated, the key focus is to achieve the same level of maturity for the commercial work. Towards this end, the project has been working on commercial agreements for the supply of gas, offtake of clean ammonia and storage of CO2.
The final investment decision (FID) for Barents Blue is targeted in 2026, with estimated production to start in 2029/2030.
