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Yara and Acme Cleantech Forge Long-Term Agreement for Green Ammonia Supply

Over its life cycle, the project is expected to contribute to the reduction of global greenhouse gas emissions by up to 5.0 million tons of CO2 equivalents.

March 04, 2024. By Abha Rustagi

Yara, a Norwegian crop nutrition company specializing in ammonia trade and shipping, has partnered with GHC SAOC, a subsidiary of Indian renewable energy firm Acme Cleantech, to sign a firm and binding agreement for the supply of ammonia with reduced CO2 emissions from Acme to Yara on a long-term basis.

The agreement follows the initial signing of a non-binding offtake Term Sheet and marks the culmination of 18 months of negotiations, during which the regulatory framework and certification regime evolved significantly, creating an opportune environment for such long-term contracts.

Covering the supply of 100,000 tons per annum of renewable ammonia, the long-term offtake agreement between Yara and Acme represents possibly the world's first arm's length contract for renewable ammonia of this scale and tenure. Over its life cycle, the project is expected to contribute to the reduction of global greenhouse gas emissions by up to 5.0 million tons of CO2 equivalents.

Magnus Ankarstrand, President of Yara Clean Ammonia, emphasized, "Yara Clean Ammonia is a frontrunner in enabling the hydrogen economy across various 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 of ACME Group, expressed satisfaction with the agreement, stating, "We are pleased to have concluded the deal with Yara, who will serve as an anchor customer for our solar-based ammonia project 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. With the signing of this contract, we aim to become the world's first large-scale producer of green ammonia."

Oman's favorable conditions for renewable energy, coupled with its strategic location and proactive governmental approach, position it as an appealing hub for producing green ammonia.

ACME is spearheading the construction of a green ammonia project in Oman with a planned capacity of 900,000 tons per annum to be developed in phases. Yara, renowned for its expertise in global ammonia production, logistics, and trade, is actively expanding the market for renewable ammonia, crucial for decarbonizing various industries.

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Business

ACME Cleantech Solutions

Yara

Norwegian crop nutrition company

Greenhouse gas emissions

GHC SAOC