Yara inks binding deal for green ammonia off-take in Oman

India’s Acme Cleantech has clinched a firm and binding deal with Yara International ASA to supply the Norwegian fertiliser company with green ammonia from the first phase of a large-scale green hydrogen and ammonia production hub in Oman.

The long-term arrangement will provide Yara with 100,000 tonnes of green ammonia annually, the Norwegian group said on Friday, adding that this is “possibly the world’s first arm’s length contract for renewable ammonia of this scale and tenure.”

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The offtake is linked to a complex that will be installed in the Duqm Special Economic Zone under a joint venture between Acme and Norwegian renewable power producer Scatec ASA (OSL:SCATC). The duo unveiled the project in March 2022, saying it will include 300 MW of electrolysers for green hydrogen production, powered by 500 MW of solar. It was then announced that the first-stage facility will have an output equal to the volume contracted by Yara, while the complex will produce 900,000 tonnes per year when fully operational.

In the base case, deliveries of the renewable ammonia from the phase-facility project to Yara will begin in 2027. The firm deal’s signing comes on the heels of a non-binding offtake term sheet from the summer of 2022.