Norwegian renewable energy company Scatec announced on Friday that its joint venture with India’s ACME has signed a term sheet with global ammonia player Yara International for offtake from the first phase of the JV’s green ammonia project in Oman.

Scatec said in a statement that the parties have agreed the principal terms for offtake of 100,000 tonnes annually of green ammonia in Phase 1, and potential further offtake from the project’s second phase.

In March 2022, Scatec and ACME Group had signed an agreement to establish a 50/50 JV to design, develop, build, own and operate a large-scale green ammonia facility in Oman’s Duqm Special Economic Zone.

The statement said the JV would begin developing the first phase of the project over 12 square kilometres of land to produce 100,000 metric tonnes of green ammonia per annum. When fully developed, the project is expected to produce up to 1.1 million tonnes of green ammonia annually.

The first phase would have about 300 megawatts (MW) of electrolyser capacity, powered by 500 MW of solar, Scatec had noted in its March press statement.

Magnus Krogh Ankarstrand, President, Yara Clean Ammonia said the green ammonia from Oman would go into the company’s distribution system for supply as emission-free fuel for deep-sea shipping, power production and fertiliser globally.

Thanking the Oman Authorities for fast-tracking the development, Rajat Seksaria, CEO, ACME Group said he hoped the project would become an early success story in the green ammonia sector.

Terje Pilskog, CEO, Scatec said the project in Oman forms part of the company’s strategy to capitalise on its experience in large-scale renewables and will further its ambitions within green hydrogen and ammonia.

(Writing by Anoop Menon; Editing by Bhaskar Raj)