Horisont Energi AS and PGNiG Upstream Norway have signed a Letter of Intent (LoI) whereby PUN aims to enter as partner and operator in the only CO2 licence in the Barents Sea - Polaris. The CO2 exploration licence EXL003 with the project name Polaris Licence is currently fully controlled by Horisont Energi. The LoI lays the ground for clearing formalities with authorities necessary for PUN to become operator and acquire a participating interest in the Polaris Licence.

The process of onboarding PUN is expected to be completed by early December this year. This LoI is an important milestone in line with the ORLEN Group's strategic decision to enter the CO2 storage business, with the Norwegian Continental Shelf as one of the key markets for its implementation. The Polaris project is thus the ORLEN Group's first intended CO2 licence anywhere.

PUN as partner and operator in Polaris is an important third key element for Horisont Energi over the last months. The first element was to secure the power supply for the planned Barents Blue ammonia plant in Northern Norway in June. The second element was the 50/50 joint development agreement signed with the European fertiliser company Fertiberia in late August for the joint development of the Barents Blue ammonia plant.

The LoI with PUN covers the Polaris Licence. Although a preferred CO2 storage solution for the Barents Blue project, the Polaris Licence is expected to provide additional storage volumes for other CO2 customers. A PUN partnership would follow suit to the European energy major E.ON's and Horisont Energi's prolonged and extended partnership to develop a European CCS value chain.