Norwegian crop nutrition company Yara International will offtake 100,000 tons/annum of renewable ammonia from Acme Cleantech under what they term is the world's '1st arm's length' contract for the fuel of this scale and tenure. This is the entire production capacity of the latter's Oman project under phase I.
Acme's wholly-owned subsidiary GHC SAOC will supply renewable ammonia from phase I of its Oman project where it is building a state-of-the-art Green Hydrogen and Green Ammonia project at Duqm with 100,000 tons/annum capacity. It is planned to be expanded to 1.2 million tons/annum with about 3.5 GW electrolyzer capacity, to be powered by 5.5 GW of solar PV capacity.
Acme has partnered with the Norwegian renewable energy company Scatec for the Oman project (see ACME Ropes In Scatec For Oman Ammonia Project).
The duo did not disclose the duration of the long-term binding agreement that was signed after 18 months of negotiations. Supply is scheduled to begin from 2027.
"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," said ACME Group Director Ashwani Dudeja. "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."
Yara expects the deal to help bring down its global GHG emissions by up to 5 million tons of carbon equivalents. This renewable ammonia supply will comply with the European Union's Renewable Fuels of Non-biological Origin (RFNBO) and Renewable Energy Directive requirements.
Yara Clean Ammonia President Magnus Ankarstrand adds, "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."
With Yara Ammonia, the Norwegian group says it aims to strengthen its leading position as the world's 'largest' ammonia distributor for industrial applications, and as a low-emission fuel for shipping and power.