By Dominic Chopping

 

Norwegian clean-energy and carbon-storage services provider Horisont Energi A/S said late Wednesday it has entered into a strategic cooperation deal with E.ON SE for the development of a European end-to-end carbon-capture, transport and storage service offering.

The company said the deal also includes the development of a carbon-removal business and business models on clean-ammonia production and supply.

As part of the deal, Horisont Energi said it will carry out a private placement directed at E.ON, and E.ON will acquire a 25% stake in Horisont Energi.

E.ON will pay 370.9 million Norwegian kroner ($42.5 million) for 5.7 million new shares in the company issued at NOK65 a share, Horisont Energi said.

The private placement is planned to be completed at the end of January 2022, the company said.

"E.ON's proposition in this market is to establish a comprehensive offering to our customers and partners by becoming a 'one-stop-shop' for their decarbonization activities as part of our growth strategy," E.ON board member Patrick Lammers said.

"It will enable E.ON to deliver a full outsourcing proposition to decarbonize, from site specific optimized carbon capture to secure long-term storage and clean hydrogen supply."

According to the agreement, E.ON will take responsibility for the carbon capture and liquefaction, while Horisont Energi will be responsible for transport and sequestration of the carbon dioxide. The service will be offered to both existing and new customers of E.ON.

Horisont Energi said it will also carry out a subsequent offering of 769,230 new shares at NOK65 each to raise NOK50 million. This subsequent offering will be directed toward existing shareholders in the company who weren't allocated offer shares in the private placement, it said.

 

Write to Dominic Chopping at dominic.chopping@wsj.com

 

(END) Dow Jones Newswires

January 13, 2022 02:54 ET (07:54 GMT)

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