ACME signs deal for green ammonia from Oman project

MUSCAT: Green Hydrogen and Chemicals Company SAOC (GHC), a wholly-owned subsidiary of Indian renewable energy group ACME Cleantech, has entered into a firm and binding agreement with leading Norwegian crop nutrition company Yara for the long-term supply of green ammonia from its proposed green hydrogen project at Duqm SEZ in the Sultanate of Oman.

The agreement solidifies a previous non-binding offtake Term Sheet, marking the culmination of 18 months of negotiations. During this period, the regulatory framework and certification regime evolved significantly, fostering a conducive environment for such extensive, long-term contracts.

This enduring offtake agreement between Yara and ACME encompasses the supply of 100,000 tons per annum of renewable ammonia, constituting one of the world’s inaugural arm’s length contracts for renewable ammonia on this scale and tenure. Over the life cycle of the project, it is anticipated to contribute to the reduction of global greenhouse gas (GHG) emissions by up to 5.0 million tonnes of CO2 equivalents.

In the primary scenario, the renewable ammonia will be sourced by ACME from Phase-1 of its Oman project, with an anticipated commencement date in 2027. It will adhere to the EU RFBNO and Renewable Energy Directive requirements.

Magnus Ankarstrand, President of Yara Clean Ammonia, expresses enthusiasm about the collaboration, stating, “Yara Clean Ammonia is a frontrunner in enabling the hydrogen economy across the shipping, food, power, and industrial sectors. The renewable ammonia from Oman will be part of our scalable distribution system, developing a reliable, safe, and cost-efficient supply chain for low emission ammonia across different market segments. This agreement demonstrates the power of partnerships and collaboration to develop value chains that reduce emissions.”

Ashwani Dudeja, Director of ACME Group, underscores the significance of the deal, remarking, “We are pleased to have concluded the deal with Yara, who will serve as an anchor customer for our solar-based ammonia project being developed in Oman. This agreement is only a start and will facilitate further cooperation between the two companies while playing a vital role in accelerating the adoption of green hydrogen and its derivatives. We have had a number of firsts to our credit in this sector, and with the signing of this contract, we aim to become the world’s first large-scale producer of green ammonia.”

Oman’s favorable conditions for renewable energy, strategic location, and the proactive government approach make it an appealing hub for producing green ammonia. ACME is at the forefront of constructing a green ammonia project in Oman with a planned capacity of 900,000 tonnes per annum to be developed in phases.

Renowned for its expertise in global ammonia production, logistics, and trade, Yara actively expands the market for renewable ammonia, playing an essential role in decarbonizing various industries.