Norwegian Yara and ammonia trade and shipping company GHC SAOC, a wholly owned subsidiary of Acme Cleantech, have signed an agreement for the supply of green ammonia produced in Oman from Acme on a long-term basis.
The agreement follows 18 months of negotiations and a previously signed a non-binding offtake Term Sheet.
The two shared that across the 18 months, the regulatory framework and certification regime “evolved significantly,” creating a “suitable environment” for such long-term contracts.
The long-term offtake agreement covers the supply of 100,000 tons of renewable ammonia per annum.
It was shared that this could be “the world’s first” arm’s length contract for renewable ammonia of this scale and tenure.
The project, over its life cycle, will help reduce global GHG emissions by up to 5.0 million tons of CO2 equivalents, it was shared.
In the base case, the renewable ammonia will be supplied by ACME from Phase-1 of its Oman project, with an expected start date in 2027, which will comply with the EU RFNBO and Renewable Energy Directive requirements.
ACME is spearheading the construction of the green ammonia project in Oman, which has a planned capacity of 900,000 tons per annum to be developed in phases.
Commenting on the deal, Magnus Ankarstrand, President of Yara Clean Ammonia, said: “Yara Clean Ammonia is a frontrunner in enabling the hydrogen economy across the shipping, food, power, and industrial sectors. 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. This agreement demonstrates the power of partnerships and collaboration to develop value chains that reduce emissions.”
Ashwani Dudeja, Director ACME-Group, added: “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. 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. 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.”