Germany multinational E.ON and Norway’s Horisont Energi have agreed to collaborate on carbon capture, storage, and transportation, as well as on the production of green hydrogen and ammonia.

E.ON will acquire a 25% stake in Horisont Energi as part of the agreement.

The deal is part of efforts by the two companies to play a key role in the decarbonisation of Europe’s energy and economy, as well as to prepare themselves for future and emerging business models.

E.ON and Horisont Energi will form a business that will offer carbon capture, storage, transport, and removal services, as well as within the green hydrogen and ammonia value chains, according to the statement.

Bjørgulf Haukelidsæter Eidesen, CEO of Horisont Energi said the deal will enable the two companies “to play a decisive role in the decarbonisation of key industrial sectors in Europe, whilst scaling up and commercialising CCS and clean ammonia.”

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The collaboration comes as Europe is developing green hydrogen production facilities and preparing storage and transportation infrastructure in anticipation of a huge increase in demand.

To decarbonise the economy, the European Commission has proposed to replace 50% of fossil-gas-derived grey hydrogen with green hydrogen by 2030.

Patrick Lammers, member of the board of E.ON added: “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 decarbonisation activities as part of our growth strategy.

“It will enable E.ON to deliver a full outsourcing proposition to decarbonise, from site-specific optimised carbon capture to secure long-term storage and clean hydrogen supply. Collaborating with Horisont Energi will enable us to be a first mover in the future industrial carbon cycle business, that will be a key driver in European industrial and municipal decarbonisation in the second half of the decade”.

E.ON will handle carbon capture and liquefaction whilst Horisont Energi will be responsible for the transport and sequestration of the carbon dioxide.

Norway’s Horisont Energi and E.ON form carbon capture and green hydrogen alliance