Sandnes, Norway - 19 February 2025: At the end of September 2024 Horisont Energi
(EURONEXT: HRGI) (the "Company") announced a strategic review to explore several
options for its projects within CCS and clean ammonia. Danske Bank Markets was
appointed as financial advisor for the review.
The aim for the strategic review was to identify and evaluate opportunities that
would maximize shareholder value and ensure that the Company is well-positioned
to secure the required funding essential for key project milestones and the
successful execution of its long-term strategy.
The Company has together with its financial advisor conducted an exhaustive and
thorough process towards potential investors. The main take aways from the
review may be summarised as follows:
- The market for green transition projects has experienced a downturn since its
peak in 2021, coupled with a sharp increase in interest rates. Several investors
in this space have shifted towards cash flow-positive businesses.
- The uncertainty related to the green transition, and the change in political
and market sentiment towards green energy solutions is now causing an increased
level of uncertainty within the investor community.
Because of the changes to the market and the investor sentiment, the strategic
review has taken somewhat longer than expected. The strategic review with Danske
Bank Markets has been completed, and despite significant investor interest no
additional financing has been secured. However, the Company is continuing to
pursue remaining investor tracks towards completion.
Progress has however been made on the work streams both for Barents Blue and
Gismarvik CO2 hub, and the Board is of the opinion that the Company and its
shareholders will benefit from the value creation opportunities associated with
each project.
To enable Horisont Energi to reach important project milestones, the Company
will implement actions to extend the capital runway beyond 2025. The Board
therefore has decided to further reduce the costs through additional manpower
reductions. The implementation of the manpower reduction will be effective March
31. The planned level of employees remaining with the Company is 10-15 when the
process is completed, depending on the overall progress of the Company's
activities.
With these measures, the Board believes that the Company is well positioned to
navigate the current market challenges.
For more information:
Bjørgulf Haukelidsæter Eidesen, Co-CEO
+ 47 990 36 892
bhe@horisontenergi.com
Leiv Kallestad, Co-CEO
+ 47 958 95 661
Leiv.kallestad@horisontenergi.com
About Horisont Energi
Horisont Energi (EURONEXT: HRGI) is a Norwegian clean energy company that
provides clean energy and carbon transport and storage services. The company
plan to transform gas, water and renewable energy into cost-leading clean
ammonia and hydrogen and offer CO2 transportation and storage services using
proprietary technology, paving the way for a low carbon economy. The Horisont
Energi group includes three subsidiaries: Horisont Ammoniakk for the clean
ammonia business