Indian solar power company ACME Group and Norwegian energy producer Scatec have announced a joint venture (JV) partnership to produce 1.2 million tons of green ammonia annually in Oman, with the help of solar power, and can be expanded in the future at the same location.
The duo have signed an agreement for the 50:50 JV to design, develop, build, own and operate the large scale green ammonia facility. Under phase I, it will generate about 100,000 tons with 300 MW of electrolyzer capacity and 500 MW solar energy. It will be located in the Duqm Special Economic Zone.
Both the partners said they are in advanced discussions with reputable off-takers with a duration of 20-25 years. This will ensure financing for the facility while the duo fund through a mix of equity and project finance debt.
"Oman has excellent solar resources and a strategic location for production of green ammonia. ACME Group has been in the forefront of green ammonia production with this project, and in Scatec we can capitalize on our expertise in renewables, project structuring and financing, execution and operation to accelerate the decarbonization of the world," said Scatec CEO Raymond Carlsen.
While the project schedule is still being worked out, ACME said it has developed the Oman project over the last 18 months and has already set up the world's 1st single-location integrated solar power to green ammonia facility at Bikaner in India's Rajasthan (see ACME Group To Set Up Green Hydrogen/Ammonia Project).
Previously, Scatec had announced its entry into Indian solar energy space with a 900 MW project partnership with ACME which the duo have put on hold due to India's impending Basic Customs Duty (BCD) on imported solar cells and modules from April 1, 2022 (see 900 MW India Solar Project Put On Hold).
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