Fertiliser giant signs binding offtake agreement for 100,000 tonnes of green hydrogen-derived ammonia from Oman
ACME Group’s supply will comply with strict EU regulations on emissions intensity and upstream renewable electricity
Norwegian fertiliser giant Yara has signed a binding offtake agreement with Indian developer ACME Group for 100,000 tonnes of renewable ammonia a year from a project in Oman.
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The two firms had previously signed non-binding term sheets in July 2022 for full offtake from the first phase of the unnamed project, which will have 300MW electrolyser capacity powered by 500MW of solar and start up in 2027.
“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,” said Ashwani Dudeja, director of green hydrogen and ammonia at ACME.
However, Yara and ACME have remained coy about some of the details of the project, including the length of the agreement and the price struck.
While Houston-based KBR had been selected to supply the ammonia synthesis technology in 2021, the manufacturer of the project’s electrolyser or solar panels has not yet been disclosed.
Yara has hinted that the ammonia it has agreed to buy may not go into its own fertiliser manufacturing operations, but rather be sold on to a range of different markets.
“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.”
While the project will be located in Duqm special economic zone, ACME had secured land in 2021 through the government’s Public Authority for Special Economic Zones and Free Zones, rather than the country’s Hydrom green hydrogen auction process.