Horisont Energi and VNG sign letter of intent

Sandnes (Norwegen)/Leipzig, 10 November 2023. The Leipzig-based VNG Handel & Vertrieb GmbH (VNG), a wholly owned subsidiary of VNG AG has signed a letter of intent with the Norwegian energy company Horisont Energi, regarding the offtake of blue ammonia from the Barents Blue project in Hammerfest in Northern Norway – Europe´s largest clean ammonia plant project.

As a major German gas importer and wholesaler, VNG H&V intends to purchase blue ammonia from Horisont Energi. The aim is to make the ammonia available to VNG H&V's customers, particularly in the industrial sector, either directly or in the form of hydrogen. The agreement sets out a long-term partnership for clean ammonia supply targeting a quantity of 100,000-300,000 tons per year starting from 2028.

VNG has a reliable relationship with Norwegian energy companies for over 30 years and will continue to work closely with them in the future.  "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. In future, we will need ammonia in particular as a carrier for hydrogen, but also to decarbonise the fertiliser industry and shipping", explained Ulf Heitmüller, CEO of VNG AG.

“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. We are delighted to have joined forces with a strong organization and dedicated team”, says Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi.

Together with Horisont Energi's Polaris CCS project (underground carbon storage in the Barents Sea), Barents Blue will provide clean ammonia with a CO₂ capture rate of 99% and a correspondingly low carbon footprint compared to conventional production.