Page 15 - EurOil Week 05 2023

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Equinor, Var Energi abandon Barents Blue

ammonia project in Norway

NORWAY NORWEGIAN oil firms Equinor and Var “However, after thorough assessment of the pro-
Energy have opted against further involvement ject and our overall portfolio, we have concluded
Var Energi and Equinor in Horisont Energi’s Barents Blue ammonia pro- that it is no longer appropriate to proceed with
have been replaced as ject, allowing a cooperation agreement on the the Barents Blue concept.”
partners in the blue scheme to lapse at the end of January. Instead, Var Energi has determined that
ammonia project by Due to be located in Finnmark in north Nor- developing gas at Goliat and Alke, as well as the
Spain’s Fertiberia. way, Barents Blue is set to be Europe’s largest blue Lupa field, “will require an export solution with
ammonia project. It will use Barents Sea gas to greater capacity than what we deem relative
produce ammonia, while the CO2 released dur- within the scope of the project.” Cooperation
ing the process will be captured and stored under with other operators in the region will be key to
the seabed. Its first train alone is expected to pro- unlocking this potential.
duce 1mn tonnes of blue ammonia per year. Equinor did not specify why it was abandon-
Equinor and Var Energi joined the project in ing Barents Blue, but it did say that it “remains
2021, but have chosen not to continue. Instead, positive to explore gas supply solutions” from its
Horisont has tapped Spanish ammonia producer Hammerfest LNG complex on the shore of the
Fertiberia as a replacement partner, with each Barents Sea to the project. It also said it was leav-
company due to have a 50% interest each. ing the Polaris project, which was due to store
Horisont thanked Equinor and Var Energi for CO2 from Barents Blue.
advancing the project so far, and said Fertiberia Horisont noted that it was not in danger of
provided “significant experience” of developing losing the NOK482mn ($48.3mn) grant that
ammonia plants on an industrial scale. had been provided to Barents Blue under the
Var Energi was forthcoming on its reasons EU IPCEI hydrogen programme as a result
not for continuing with Barents Blue, stating it of the change in partners. The company will
had looked at various options for developing invite partners to the Polaris project as well, it
gas resources at the Alke and Goliat fields west said, including a qualified operator to replace
of Hammerfest, but decided that the project was Equinor.
not the solution. “A new licence group will bring the project
“We have great faith in the Barents Sea forward to a submission of plan for develop-
as a petroleum province,” the company said. ment,” it said. ™

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