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Wednesday, April 24, 2024

Yara and ACME Sign Ammonia Supply Agreement

Maritime Activity Reports, Inc.

March 1, 2024

Source: Yara

Source: Yara

Yara and GHC SAOC, a wholly owned subsidiary of India’s Acme Cleantech, have signed a binding agreement for the supply of ammonia with reduced CO2 emissions from Acme to Yara on a long-term basis.

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 evolved significantly, creating a suitable environment for such long-term contracts.

The long-term offtake agreement covers the supply of 100,000 tons per annum of renewable ammonia and is possibly the world’s first arm’s length contract for renewable ammonia of this scale and tenure. Over its life cycle, the project will help reduce global GHG emissions by up to 5.0 million tons of CO2 equivalents.

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 and will comply with the EU RFBNO and Renewable Energy Directive requirements. Oman's favorable conditions for renewable energy, its strategic location, and the proactive approach by the government, makes it an appealing hub for producing green ammonia. ACME is spearheading the construction of green ammonia project in Oman with a planned capacity of 900,000 ton per annum to be developed in phases.

“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,” says Magnus Ankarstrand, President Yara Clean Ammonia.


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