E.ON Signs A $42.5 Million Deal With Horisont Energi For 25% Stake

Horisont Energi – the Norwegian clean-energy and carbon-storage services provider announced on Wednesday strategic cooperation with utility company E.ON SE for the development of European carbon-capture and storage services. 

E.ON will also acquire a 25% stake in Horisont Energi and agreed to pay 370.9 million Norwegian kroner ($42.5 million) for 5.7 million new shares in the company issued at NOK65 ($7.4) a share. Apart from carbon capture and storage services, the deal includes the development of a carbon removal business and production and value chains for clean hydrogen and clean ammonia. 

“We’re extremely excited to be joining forces with the leading European energy company E.ON to contribute to the energy transition in Europe… This will enable Horisont and E.ON to play a decisive role in the decarbonization of key industrial sectors in Europe, whilst scaling up and commercializing CCS and clean ammonia,” said CEO of Horisont Energi, Bjørgulf Haukelidsæter Eidesen.

Relevant: Baker Hughes Enters A Carbon Capture Project With Horisont Energi

With this partnership, E.ON aims to establish a value proposition to the carbon capture market and provide a comprehensive offering to its customers. The company wants to become a ‘one-stop-shop’ for the decarbonization activities of potential clients which is part of its growth strategy.

According to the agreement, E.ON will take responsibility for the carbon capture and liquefaction, and Horisont Energi will take care of the transport and sequestration of the CO2. The offering will be targeted at both existing and new customers of E.ON. 

Horisont also plans to carry out a subsequent offering towards existing shareholders in the company of 769,230 new shares at NOK65 each to raise an additional NOK50 million. The carbon capture investment would help the company pave the way for the low carbon economy and enhance its capabilities in the CO2 transportation and storage solutions industry.

Relevant: Horisont Energi Releases First-Half Year 2021 Earnings Results

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