Barents Blue clean ammonia plant project status regarding reservation of power from the local power grid

22 Mar 2023 17:00 CET

SANDNES, Norway 22 March 2023 – Horisont Energi (EURONEXT: HRGI), gives a
project update on the Barents Blue project regarding connection to the local
power grid. Power supply from the grid in Northern Norway is important for
finalising the plant design and the further development of the Barents Blue
project into the FEED phase.

Our initial application of 105 MW to the national grid company Statnett was
rejected amongst many other projects early this year due to lack of power
generation capacity into Northern Norway’s main electrical grid. There are also
limitations in transmission capacity, which means that some of the power
allocations are based on conditions, i.e., they lose access in the event of
major disruptions to the transmission network.

Statnett awards applicants on a “first come, first served” policy for projects
with a defined need for power, which means that Statnett does not have the legal
mandate to prioritise projects on parameters such size, project value or climate
impact.

The Barents Blue project is of great importance to the local municipality in
Hammerfest, as the project will ha large impact on industrial development in the
region. The project has also been awarded 482 million NOK from Enova as part of
the IPCEI Hydrogen project Hy2Use, thus being part of the hydrogen value chain
in EU.

Horisont Energi has worked closely with Lucerna (the local grid company in
Hammerfest) and Statnett to secure sufficient power supply to the Barents Blue
project. Horisont Energi has had a meeting with Statnett and Lucerna about how
we can secure the necessary access to power given the power situation in the
north. The rejection we received was based on an application for 3 ammonia
trains with a total power need of 105 MW. There is a possibility that some
already allocated power will be released as a result of some of the previous
allocations not being used within a reasonable period of time. Lucerna's
application on behalf of Horisont Energi is early in the queue of applicants and
this position will not change with a revised application. In accordance with
current rules, Statnett allocates power in the grid based on a "first come,
first served" principle to projects that can demonstrate a real power need.
Together with Lucerna, Horisont Energi will revise the application to include
only one ammonia train at this time with a maximum power need of 45 MW.

Horisont Energi has adjusted the first development phase of the project from two
ammonia production trains to one train for various reasons which includes the
power supply shortage in Northern Norway and will revise our application and
reduce the power demand from 105 MW to 35-45 MW.

- «An important element in the establishment of the Barents Blue project is
secure access to electric power. Our first application was rejected along with
most other applications. The recent period has shown that there are clear
limitations to the allocation of new power. We are now making the necessary
changes to address the situation and look forward to getting a clarification on
this,” says Bjørgulf Haukelidsæter Eidesen, CEO at Horisont Energi.

Statnett is in the process of revising already approved applications to
potentially relieve reserved power in projects that may be further away from
investment decisions, or projects that potentially have reserved more power than
needed.

The decision on awarding new power reservations to the power stem grid is
expected before summer 2023.

Lucerna is continuing to work on the concession for the grid connection to the
132 kV regional grid for the ammonia plant and the location of a switchgear
station for the entire industrial area.

Horisont Energi is also working to establish consumption figures for the power
needs during the construction phase, as this will affect Lucerna's 22 kV
distribution grid and necessitate changes.

For further information, please contact:
Bjørgulf Haukelidsæter Eidesen, CEO
+47 990 36 892
bhe@horisontenergi.com

Siri Melberg, Head of branding & communication
+47 470 35 718
sm@horisontenergi.com

About Horisont Energi
Horisont Energi (EURONEXT: HRGI) is a Norwegian clean energy company that will
provide clean energy and carbon transport and storage services. The company will
transform gas into cost-leading clean ammonia and hydrogen and offer CO2
transportation and storage solutions using proprietary technology, paving the
way for a low carbon economy. The company was founded in 2019 and is
headquartered in Sandnes, Norway. https://www.horisontenergi.no

You can follow us at:    
https://twitter.com/horisontenergi 
https://www.linkedin.com/company/horisontenergi/ 
 

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