Muscat: Indian renewable energy development company ACME Group and Norwegian firm Scatec – which are developing a major green hydrogen and ammonia project in Duqm – have signed a term sheet with Yara International, a leading global ammonia player, for offtake from the first phase of green ammonia project in Oman.

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 front-runner in global ammonia production, logistics and trade and are 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 sqkm of land to produce 100,000 metric tonnes 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 1.1mn tonnes of green ammonia annually.

According to a press statement, the parties have agreed the principal terms for offtake of 100,000 tonnes annually of green ammonia in a first phase, and potential further offtake from the project’s second phase as this develops.

‘This agreement is groundbreaking for enabling the partners’ first green ammonia project in Oman. For Yara the green ammonia supply will contribute to produce green fertiliser and for decarbonising other industries like shipping, power, and steel industry,’ the statement added.

Magnus Krogh Ankarstrand, president of Yara Clean Ammonia, said, “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 fertiliser globally.”

Rajat Seksaria, CEO of ACME Group, said, “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 the Omani authorities for their proactive support in enabling fast track development of this project.”

Terje Pilskog, CEO Scatec, said, “This is a crucial milestone for Scatec with ACME and Yara in this exciting project. The project is part of our strategy to capitalise on our experience in large-scale renewables in attractive regions, and the agreement will further our ambitions within green hydrogen and ammonia.”

Oman has excellent conditions for renewable energy and a strategic location to produce green hydrogen and green ammonia for export to both Europe and Asia, which are the pacesetters in reducing carbon-emissions.