Muscat - India’s ACME Group, a pioneer in cleantech sector such as solar, green hydrogen and ammonia development, along with Norway’s Scatec ASA a leading renewable power producer, and Yara International ASA, a leading Norwegian global ammonia player, have signed a term sheet for offtake from the first phase of green ammonia from the Sultanate of Oman.
ACME and Scatec are already evolving the green ammonia project in Oman. The joint venture aims at building a state-of-the art facility. Yara is a front-runner in global ammonia production, logistics and trade and are growing the market for green ammonia that can be used for decarbonising other industries.
ACME and Scatec will begin developing the first phase of the project over 12 km2 of land to produce 100,000 metric tonnes of green ammonia per annum in the Special Economic Zone at Duqm. Once fully developed, a second phase will be added, and the project is expected to produce up to 1.1 million tonnes of green ammonia annually.
The parties have agreed the principal terms for offtake of 100,000 tonnes annually of green ammonia in a first phase, and potential further offtake from the projects second phase as this develops. This agreement is groundbreaking for enabling the partners’ first green ammonia project in Oman. For Yara the green ammonia supply will contribute to produce green fertiliser and for decarbonising other industries like shipping, power, and steel industry.
There is a growing need to accelerate decarbonisation of hard-to-abate industries through Power-to-X solutions such as production of green hydrogen, ammonia and other critical feedstocks powered by renewable energy.
Magnus Krogh Ankarstrand, President Yara Clean Ammonia, commented: “Yara Clean Ammonia is working on enabling the clean ammonia market. The green ammonia from Oman will go into our scalable distribution system and contribute to emission-free fuel for deep-sea shipping, power production and fertiliser globally.”
Rajat Seksaria, CEO ACME Group, added: “We are delighted to partner with Yara Clean Ammonia as an offtaker from our under development project in Oman. We hope that this project will be an early success story in the sector and play a vital role in accelerating large scale adoption of green ammonia. We are also grateful to Oman Authorities for their proactive support in enabling fast track development of this project.”
Terje Pilskog, CEO Scatec, stated: “This is a crucial milestone for Scatec with ACME and Yara in this exciting project. The project is part of our strategy to capitalise on our experience in large-scale renewables in attractive regions, and the agreement will further our ambitions within green hydrogen and ammonia.”
Yara Clean Ammonia operates the largest global ammonia network with 12 ships and has access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world, through Yara. Revenues and EBITDA for the last 12 months were $3,037 million and $166 million respectively as per Q1 2022.
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