Equinor and Var Energi have opted not to progress with an ammonia production project after a cooperation agreement expired.
Instead, operator Horisont Energi will forge ahead with the Barents Blue concept alongside new partner Fertiberia.
The scheme aims to make ammonia from natural gas from the Barents Sea, capture the CO2 and store it under the seabed.
The Polaris CO2 storage solution was selected as the CCS solution for the Barents Blue project – the two initiative share the same partners.
As a result, Equinor decided not to take any further part in the Polaris project.
Grete Tveit, senior vice president for low carbon solutions in Equinor, said: “We are pleased to see that Horisont Energi will continue to mature the Barents Blue project with a new partner and build on the progress and experiences from our partnership.
“I wish to thank the Barents Blue operator Horisont Energi and our partner Vår Energi for the collaboration we have had in the project.”
Equinor says it remains positive to explore gas supply solutions from Hammerfest LNG to the Barents Blue project following the changes in the
Var Energi meanwhile has stressed that its decision to walk away from Barents Blue will not impact its position in the Barents Sea, and the work to find a comprehensive gas export solution continues.
In recent years, the operator has investigated various alternatives for exporting the gas resources discovered in Alke and Goliat, west of Hammerfest.
The company decided to join the Barents Blue collaboration project in 2021, following efforts initiated by Equinor and Horisont Energi to establish an ammonia factory in Hammerfest, including CO2 capture and storage.
The purpose was to explore tie-in of the Alke and Goliat gas resources to the scheme, while also contributing to a more comprehensive solution for the region overall.
The partnership has worked actively to reach a concept decision, but the overall situation has led to the decision to seek other solutions, Var Energi said.
The company’s EVP for project development and SCM, Atle Reinseth said: “We have great faith in the Barents Sea as a petroleum province. However, after thorough assessment of the project and our overall portfolio, we have concluded that it is no longer appropriate to proceed with the Barents Blue concept.
“Development of the proven resources in the region, including Goliat, Alke and Lupa, will require an export solution with greater capacity than what we deem realistic within the scope of the project. We would like to thank Equinor and Horisont Energi for the collaboration and wish the operator all the best in further maturing Barents Blue.”