Welcome to this annual report presentation. Happy to have you here. My name is Bjørgulf Haukelidsæter Eidesen. I'm the CEO of Horisont Energi. Let me introduce you to my colleagues today.
Yeah. Thank you. Good morning. My name is Dan Jarle Flølo , and I am the CFO in the company.
Good morning. Siri Melberg , responsible for Branding and Communication.
Yes. Let's start... As a company, we are set out to accelerate the transition to carbon neutrality through pioneering projects. We have two lines of business. It's carbon capture and storage, and it's clean energy production, where we focus on clean ammonia as the energy vector. We are a company that have this as our purpose to really move the energy transition forward. We are a Norwegian company, and we started back in 2019. We still have our ammonia player, and we work along leading industrial partners. And we are committed to accelerate the transition to carbon neutrality. Our main owner, largest owner is E.ON. They're also a strategic partner and a customer in our value chain.
We've been to several funding series, from seed to series A to series B last year. I will now take you through the yearly as a company. We started out very early in the year, completing an agreement with E.ON that was one and a half years in the making, where we ended up with a long-term strategic cooperation within CCS and clean ammonia, and also an investment and acquisition of 35% of the shares. Moving on, we had started shaping a green ammonia project together with St1 in northern Norway, and we then started a work on finding a suitable site for this project.
We already completed the work program and has done a lot of offshore surveys and concept studies. We are on a very matured level for that storage. We had the survey program for the Barents Blue project. There's a lot of planning needs to be established to fully develop an ammonia plant. Survey programs on and offshore have been conducted. Furthermore, we had the milestone of getting the permitting program on storage license in June together with Neptune. We extended the partnership with Koole to include CO2 terminal in Rotterdam for aggregating CO2 for delivery to our carbon storages going forward. Furthermore, we awarded an extended concept study with Saipem.
We did conduct concept studies in 2021, but we extended this into previous studies in 2022, we further developed and matured the. October, we signed a project agreement for the Errai project. In September, we finally, after I think also more than one and a half year, we got the approvals, the final approvals by ESA for the IPCEI project of Barents Blue. We were formally part of the IPCEI hydrogen program in E.U., so part of the formal hydrogen value chain in E.U., part of establishing hydrogen as a energy vector within E.U. That was a big milestone for us. I think to store CO2 in our carbon storages. The thinking at that point was Errai, but it's broader than just Errai.
We had the Errai DG1 feasibility milestone in November. In December, we signed the option agreement for the terminal at Gismarvik, the CO2 terminal, to be used for the Errai storage. That was a very important delivery. We signed. In the Polaris, we completed the work program for the phase one in that license, which is also an important milestone. In 2023, we had some significant events that occurred after the balance date. First off, we had a change of partnership in Barents Blue. Fertiberia entered the project and replaced Equinor and Vår Energi.
We had worked a long time with getting Fertiberia is one of Europe's largest ammonia producers with a target to become carbon neutral by 2035. It was a very important step for us to get that competency into the project and the capacity that they represent. On the CCS side, in February, we did sign an important agreement, an MOU together with Neptune and E.ON to realize a European CCS value chain, a full value chain end to end. That was a big milestone for us. A well-developed project, a well-matured project where we had a strong customer base with projects. We had a strong terminal position, well matured with several suppliers, civil scopes, concept studies, permitting plans.
Also for offshore, we had a well matured offshore scope, pipeline, templates, well placements, well matured reservoir, so a full value chain. That was another reason. There were different reasons to us not getting the license than the quality of the application and the maturity of the project. It's, it's, it is a close competition. There was another party competing for the license, and this time, they got the license and not us, despite our mature project. We have a lot of learnings and technical solutions and the Gismarvik terminal, but we can reuse. We build and further develop the European value chain together with our partners based on all the learnings that we have from Polaris and Errai.
Some of you might remember that in Polaris we developed quite far the offshore direct injection concept, and for Errai we have been developing the terminal and pipeline concept now to a concept level. We have a well matured set of concepts that we can apply for future projects. We have also taken out IP and patents. We also focusing now to establish new partnership for the CCS project Polaris and also explore third-party storage opportunities. In Polaris, we see opportunities for third-party storage. There is a lack of storage in the market, Polaris represents a well matured project where we have conducted most of the offshore operations.
We have conducted concept studies, and we have a Next on, we are further developing the strategic cooperation with E.ON, focusing now on the CCS space, focusing on our commercial model and the complete chain offering and looking into how we can expand that into Polaris and also future projects that we are working in the CCS space. We continue to look for attractive CCS projects together with our partners. There is a wide range of opportunities that we need to, we need to assess and conclude what will be the next- Aspects of the work, focusing particular on the gas supply to the project and the commercial agreements is the key focus. Furthermore, securing the power supply to the Barents Blue project for the first train, that is the focus.
We have a very good dialogue with both the local grid company and the national grid company to secure that power, to ensure the power to the Barents Blue. It's not a showstopper if we don't get it, but it is the preferred solution.
We see with the strong cash position that we have and being a very attractive partner based on the technology that we have in the company now, the high maturity in the technical solutions, the all know-how that we have built both within the concept development space for carbon storages, both offshore and onshore, the marketing knowledge that we have developed, the customer portfolio and the value project experience and organizational learning, we have a well advanced. Over to Dan to take us through some details of the accounting.
Thank you, Bjørgulf. Yes, let's just start with the income statement for 2022. The company have not booked any income for that year. All costs last year are expensed, except that office lease and some office equipment are capitalized, and they are depreciated with the NOK 2.7 million in the accounts. This gives us a net loss for 2022 of NOK 133.8 million. Let's move to the balance sheet. The balance sheet reflects, as I said, that we have not capitalized any of our development costs so far. The element of assets here is referring to the capitalized lease of NOK 9.1 million. That makes also an addition NOK 1.5 million equity of NOK 383 million after registering last year's loss.
We have a liability of NOK 6.9 million. The only loan the company have is a NOK 2.4 million loan. Rest is referring to the capitalized office lease. We have also our current liabilities of NOK 54 million. This is balanced by our on the asset side, our total receivables of...
With the outlook going forward, our strategy remains firm. We are developing industrial scale project within CCS and clean ammonia. Compared to beginning of 2022, we are in a very different position. Obviously, we had some changes to the projects, and we didn't get the Errai license. The company, the investment that we have done will be very, very useful for new projects, and the investments we will more or less be able to use them in full process of screening new areas for CO2 injections. We have identified several options. We are also in dialogue with other companies.
We are now working to assess what will be the next CCS project that we will take forward, and we will benefit from all the investments that we have made within CCS throughout 2022. We should be able to be quite cost and time-efficient in the next projects based on the work already conducted. This will be a huge benefit for this project. We will utilize that also when developing new projects and entering into new partnerships. The strategic cooperation with E.ON will further strengthen our position towards a net zero future. We see that we are further developing and deepening the cooperation with E.ON. We have done so through 2022, but we continue to do so through 2023.
We also now maturing strategies for optimal realization of the Barents Blue clean ammonia project. We have done several announcements of operating partner for the CO2 storage Polaris in 2023 based upon both, third party storage and storage of CO2 from the Barents Blue ammonia plant. A lot of work ahead of us and we are well positioned to enter into new opportunities. Thank you. It is time for the Q&A part. I hope you have put in your questions. Why? That was announced before Christmas. The question reads, "Last fall, Horisont Energi entered an agreement with E.ON for storage of more than 1 million tons of CO2 annually.
What happens with this agreement now that you do not have Errai? The storage was, we did think of Errai when we signed that agreement, but it's more general. The LOI applies also for other storages including for Polaris, which is also. The next one is a question, "Is there a specific deadline for when you need to find a new partner operator for the Polaris project in order to keep the license?" There is actually not such a specific deadline. You can say that we have not split up the license yet.
Equinor is actually still the operator, will remain so until we find a new operator license, and we will not conclude that first phase and move forward to the next phase until we have that operator in place. There is no such sort of clear-cut deadline for that to happen. There is also a question that reads, "Will there be additional costs with storing CO2 in Polaris compared to Errai?" Yes, you can say that on what we are contemplating for Polaris, not for third parties, will be that we have experienced as a more general average price. We'd also look into some potential funding schemes to see if we can mitigate that deficiency.
Currently we see there's a lack of storage and a willingness to actually get storage, since it's a limited commodity at the moment. We don't think that is any big hindrance, that it will be slightly above the market price. There's another question, "Do you see any challenges for storing CO2 for third party customers?" A business where there's clearly a large lack of storage and a higher demand than there is an offering. I guess you might know that there's been a lot of Innovation Fund projects being awarded based on the capture side. All of them need storage, and there's not enough storage. It is a let's say it's a sort of...
It's a good situation for storage providers, not as a good situation for capture projects. Still we need to scale up carbon storage availability and a lot higher than earlier in '22. Yes, that is correct. There was a very high activity level in the Errai project. We did a lot of front loading in order to be, let's say, to be able to mature the project quite quickly. That front loading has resulted in, I would say, a very high level of detail in technical solutions. We will not. That will benefit all the projects go forward.
That we think that also is part of that, what is putting us into the position that we will able to be more cost and time efficient for the projects going forward. There's a question on the option agreement that we have with the Haugaland Næringspark to develop the onshore CO2 terminal. Whether this agreement is linked to the Errai project or if this is relevant location for coming CCS projects. It's not linked actually to the Errai project, number of CO2 terminals, and I mean, CO2 storages, and it's also part of our strategy to find the best options for this terminal. Another question which is, I think, let me just read it up. "You have previously talked about Barents Blue and Errai as the projects close in time.
Which project do you expect to realize first now?" I guess the project that is most matured in the portfolio now is, I would say, and have the shortest timeline to being delivered is from the work being done in Errai to move that forward on a also a nice time schedule. But for now, it's Polaris, which could be the first one in operation for third parties. There's the question on the partnership with Fertiberia. What is the status on full partnership agreement with Fertiberia, target to be in place from 1st April 2023? Yeah. That was actually, the 1st April was actually a misprint in the presentation.
Not be able to progress because the milestone there is also what we call the concept select, we need to get the sort of the main elements in place before moving forward. We have good projects on gas, we have good projects on the operatorship for Polaris, we also need some other elements delivered, such as the power. We will work as quickly as we can, we don't know exactly when the clarification with the other deliveries that make up the concept select for that project. That was the final question. Thanks a lot for joining this session, stay tuned for more information. Thank you, have a nice day. Bye.