European energy giant E.ON acquires Horizon Energy in a cooperation agreement to develop carbon capture and storage, as well as production and value chains for pure hydrogen and pure ammonia.
Horizon Energy and European energy company E.ON enter into a strategic cooperation agreement to develop a European service offering for carbon capture, transport and storage from start to finish, developing activities in decarbonization as well as production and value chains for Pure hydrogen and pure ammonia, According to a letter from the company.
In connection with the agreement, Horisont Energi will carry out a private placement of E.ON, which will give E.ON a 25 percent ownership stake in the company.
– With this agreement, we are entering into a long-term strategic cooperation with E.ON, says Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi.
E. ON will buy 5.7 million new shares in Horizon Energy at NOK 65 per share, bringing the total investment amount to NOK 370.9 million. The price is in line with today’s closing price of NOK 65.44. The issuance (issuance of new shares) is scheduled to be completed at the end of January 2022.
Measures CCS and pure ammonia
This will enable Horisont and E.ON to play a critical role in decarbonizing important industrial sectors in Europe, at the same time we expand and commercialize the CCS and pure ammonia trade, continues Eidesen.
A fix of 769,230 shares will also be issued against existing shareholders, totaling NOK 50 million.
The collaboration between the two companies will take place with E.ON assuming the responsibility for carbon capture and condensation, while Horisont Energi will be responsible for the transportation and storage of carbon dioxide.
“Cooperating with Horizon Energy will enable us to take a leading position in the industrial carbon cycle business of the future, which will be a major driver of decarbonization of European industry and the public sector in the second half of the decade,” says E.ON Director Patrick Lammers.
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EU Green Visions
The company refers to the European Commission’s vision for decarbonization, which was launched at the end of last year. According to the Commission’s plans, the EU’s framework bill to ratify decarbonization will come in the last quarter of 2022.
The deal will be shown in more detail in an online broadcast on Thursday at 0830.
Horizon Energy entered Euronext Growth right after the new year last year. In December, the company snatched nearly half of the state’s allocation from the total NOK 1 billion for various hydrogen projects.
Horizon Energy’s market capitalization is now just over a billion kronor, after a more than 60 percent increase in the past six months. Øystein Stray Spetalen is among the top owners.
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