At the end of September 2024 Horisont Energi 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.
Source: Horisont Energy
