Horisont Energi and E.ON team up on industrial-scale CO2 storage in the North Sea
Norwegian clean energy company Horisont Energi and its Germany-based counterpart E.ON have signed a letter of intent to jointly build a European carbon value chain.
This deal will see E.ON provide more than one million tons of existing CO2 per year from its European customer sites by 2030, starting from 2027 with a gradual increase.
For its part, Horisont Energi will provide services on CO2 marine transport and long-term storage.
Subject to the license award, Horisont Energi targets to start the operation of the carbon capture and storage (CCS) project Errai, located in Norway. To this end, the development of a European carbon value chain shall apply proven and mature technologies for the capture, transport and storage of CO2 on an industrial scale.
The companies see this agreement as an important milestone in their cooperation and for Horisont Energi’s commercial CO2 transport and storage business.
Horisont Energi will apply for the announced license to operate the CO2 storage Errai in the North Sea by early January. With this agreement, both Horisont Energi and E.ON position themselves as key players and Errai as a key project in the decarbonisation of European industry and cities.
Horisont Energi plans to store four to eight million tons of CO2 annually in the first development phase of the Errai project, potentially storing more in later phases.
The project includes an onshore terminal for intermediate CO2 storage, with the intention to permanently store the CO2 in an offshore reservoir.
With the current plans, the Errai project will develop the second CO2 terminal in Norway. It was initiated by Horisont Energi in 2021, and CO2 storage is expected to start in 2026.
“It is great to take the next step towards a carbon-neutral future together with our partner and shareholder E.ON. Decarbonisation can only be achieved on a European scale, with integrated value chains and large-scale CO2 removal solutions. Today’s agreement is a significant step, not only for the realization of the Errai project but also for a carbon-neutral European industry and society”, said Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi.
“We are very proud to be a pioneer in the field of industrial CO2 circular economy together with Horisont Energi. With this next step, we aim to extend our decarbonisation solutions portfolio and make carbon capture and storage available to customers in Europe. For our industrial customers, in particular, CCS technology will play a key role in achieving their net-zero targets. As a partner to our customers, we stand ready to shape this path”, added Patrick Lammers, Member of the E.ON Board of Management.
Horisont Energi and E.ON entered a strategic cooperation agreement in January 2022 for the development of a Europe-wide range of services for the capture, transport and storage of CO2, and the establishment of corresponding value chains.
As per the agreement, E.ON will take responsibility for carbon capture and liquefaction. On the other hand, Horisont Energi will be responsible for the transport and sequestration of CO2. The service will be available for both existing and new customers of E.ON. The two companies will also mature and develop a business built upon CO2 removal.