ACME group, Scatec ASA and Yara International ASA have signed a term sheet for offtake from the first phase of green ammonia from Oman.
Oman has excellent conditions for renewable energy and a strategic location to produce green ammonia for export to both Europe and Asia, which are the pacesetters in reducing CO2-emissions.
ACME and Scatec are already evolving the green ammonia project in Oman. The joint venture aims at building a state-of-the art facility. Yara is a leader in global ammonia production, logistics and trade and is growing the market for green ammonia that can be used for decarbonising other industries.
ACME and Scatec will begin developing the first phase of the project over 12 km2 of land to produce 100 000 metric t of green ammonia per annum in the Special Economic Zone at Duqm. Once fully developed, a second phase will be added, and the project is expected to produce up to 1.1 million t of green ammonia annually.
The parties have agreed the principal terms for offtake of 100.000 tons annually of green ammonia in a first phase, and potential further offtake from the projects second phase as this develops. This agreement is ground-breaking for enabling the partners’ first green ammonia project in Oman. For Yara, the green ammonia supply will contribute to produce green fertilizer and for decarbonising other industries like shipping, power, and steel industry.
There is a growing need to accelerate decarbonisation of hard-to-abate industries through Power-to-X solutions such as production of green hydrogen, ammonia and other critical feedstocks powered by renewable energy.
Quote from Mr. Magnus Krogh Ankarstrand, President Yara Clean Ammonia:
“Yara Clean Ammonia is working on enabling the clean ammonia market. The green ammonia from Oman will go into our scalable distribution system and contribute to emission-free fuel for deep-sea shipping, power production and fertilizer globally.”
Quote from Mr. Rajat Seksaria, CEO ACME Group
“We are delighted to partner with YARA Clean Ammonia as an offtaker from our under development project in Oman. We hope that this project will be an early success story in the sector and play a vital role in accelerating large scale adoption of green ammonia. We are also grateful to Oman Authorities for their proactive support in enabling fast track development of this project.”
Quote from Mr. Terje Pilskog, CEO Scatec
“This is a crucial milestone for Scatec with ACME and Yara in this exciting project. The project is part of our strategy to capitalize on our experience in large-scale renewables in attractive regions, and the agreement will further our ambitions within green hydrogen and ammonia.”
Read the article online at: https://www.worldfertilizer.com/project-news/18072022/yara-acme-and-scatec-sign-term-sheet-for-sale-of-green-ammonia-from-oman/
You might also like
Worldwide demand for fertilizer additives accounts for a market valuation of US$ 3.34 billion in 2023 and is forecasted to reach US$ 4.7 billion by 2033-end. Over the next ten years, the global fertilizer additives market is projected to rise at 3.4% CAGR.