New Agreement on Green Ammonia from Oman

ACME group and Scatec ASA have signed an agreement with Yara for the purchase of green ammonia from Oman, a pioneer country in this field.
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The Sultanate of Oman offers excellent conditions for renewable energy. In addition, its location is strategic for producing green ammonia for export to Europe and Asia, which are pioneers in reducing CO2 emissions.

A green ammonia project already well underway

ACME and Scatec are already developing the green ammonia project in Oman. The joint venture aims to build a state-of-the-art facility. Yara is a pioneer in the production, logistics and trading of ammonia worldwide. The company is developing the market for green ammonia that can be used to decarbonize other industries.

ACME and Scatec will begin development of the first phase of the project on a 12 km² site. It will produce 100,000 metric tons of green ammonia per year in the Duqm Special Economic Zone. Once fully developed, a second phase will be added. The project is expected to produce up to 1.1 million tons of ammonia per year.

Thus, the parties have agreed on the main conditions for the removal of 100,000 tons per year of clean ammonia in a first phase. This agreement is groundbreaking, as it allows the partners to realize their first green ammonia project in Oman. For Yara, the supply of green ammonia will contribute to the production of green fertilizers and the decarbonization of other industries such as shipping, power and steel.

An encouraging agreement for the three companies

The leaders of the three companies were enthusiastic about the project. First, according to Magnus Krogh Ankarstrand, president of Yara Clean Ammonia:

“Yara Clean Ammonia is striving to open up the clean ammonia market. Oman’s green ammonia will be integrated into our scalable distribution system and will contribute to the production of emission-free fuel for deep-sea shipping, power generation and fertilizer worldwide.”

Second, for Rajat Seksaria, CEO of ACME Group:

“We are delighted to partner with Yara Clean Ammonia as an offtaker for our project under development in Oman. We expect this project to be an industry first success and to play a key role in accelerating the large-scale adoption of green ammonia. We are also grateful to the authorities in Oman for their proactive support enabling rapid development of this project.”

And finally for Terje Pilskog, CEO of Scatec:

This is a crucial step for Scatec with ACME and Yara in this exciting project. The project is part of our strategy to capitalize on our experience with large-scale renewables in attractive regions, and the agreement will strengthen our green hydrogen and ammonia ambitions.”

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