Norwegian clean energy company Horisont Energi and its partners Neptune Energy have signed a memorandum of understanding (MoU) with German energy giant E.ON to explore the creation of a European carbon capture value chain.
The MoU spans all aspects of the project, from its funding, development and execution and sends a strong signal that demand for CO2 transportation and storage from EU industries is coming.
Back in January 2022 E.ON acquired a 25% stake in Horisont Energi and this MoU marks another chapter in the companies’ relationship.
Bjørgulf Haukelidsæter Eidesen, CEO at Horisont Energi said: “Together, we will strengthen our position to establish a European CCS value-chain business. In case of the license award of Errai, a possible direct participation by E.ON would further strengthen the commercial basis for this project.”
Oil and gas company Neptune Energy also commented on the MoU: “Several industries cannot be fully electrified and will therefore depend on CCS to meet net zero emissions requirements and the fulfillment of the 1.5-degree target by 2050. Such industries are situated across Europe and include the production of steel, cement, various chemicals, pulp, and paper.”
The Errai project was initiated by Horisont Energi in 2021 and a partnership with Neptune Energy followed in August 2022. Neptune has previous experience with carbon capture, with CO2 reinjection at the K12-B gas in the Dutch North Sea since 2014 and in the in Norwegian Snøhvit field since 2008 (as partners).
A location was selected in January, 2023 with a potential capacity for CO2 storage of 4-8 million tonnes in the first development phase. In Horisont Energi’s joint application with Neptune for Errai at the end of 2022 the latter was designated as the operator.