ACME to supply green ammonia from Oman plant to Norway’s Yara
Yara, a leading Norwegian crop nutrition company and a global leader in ammonia trade and shipping, has partnered with ACME Cleantech to offtake 100,000 tonnes of green ammonia annually from ACME'S green ammonia plant in Oman.
Yara and Green Hydrogen and Chemicals Company (GHC), a wholly-owned subsidiary of ACME Cleantech, a leading renewable energy company in India, signed a firm and binding agreement on Friday for the supply of green ammonia from ACME'S Oman plant to Yara on a long-term basis, according to a statement released by Yara.
Both companies had previously signed a non-binding offtake term sheet, and the current agreement concludes 18 months of negotiations during which the regulatory framework and certification regime have significantly evolved, creating a suitable environment for such long-term contracts.
The long-term offtake agreement between Yara and ACME covers the supply of 100,000 tonnes per annum of green ammonia, possibly marking the world’s first arm’s length contract for renewable ammonia of this scale and tenure, according to Yara.
Yara added that the green ammonia will be supplied by ACME from Phase-1 of its Oman project with an expected start date in 2027.
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.”
Ashwani Dudeja, Director of ACME Group, said, “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.”