Renewable energy company ACME Cleantech and fertilizer and chemicals company Yara have signed a binding agreement for supply of 100,000 mt/year renewable ammonia, ACME said March 1.
ACMA's renewable ammonia project in Duqm in Oman is under construction, targeting commissioning by end 2025 or early 2026 and eyeing expansion to 1.2 million mt/year, the company said previously. ACME also has renewable hydrogen/ammonia projects in India and the US in various stages of development.
"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," said Magnus Ankarstrand, president of Yara Clean Ammonia.
Yara Clean Ammonia is "enabling the hydrogen economy across the shipping, food, power, and industrial sectors."
In the base case, the renewable ammonia will be supplied by ACME from phase one of its Oman project with an expected start date in 2027, complying with the EU RFBNO and Renewable Energy Directive requirements, ACME said.
Ashwani Dudeja, director, ACME Group said, Yara will serve as "an anchor customer" with the scope of further cooperation in accelerating the adoption of renewable hydrogen and its derivatives.
ACME, with its business springing from renewable energy, is spearheading the construction of the Oman project with Scatec, with a planned capacity of 900,000 mt/year in phases, it said.
ACME operates 5 GWp of solar power projects in 13 states in India and Oman, while another 10 GWp capacity is under construction.
Yara, known for its expertise in global ammonia production, logistics, and trade, is expanding the market for renewable ammonia, essential for decarbonizing various industries.
Yara operates an ammonia network with 15 ships and has access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world, the firm said.
ACME is one of the companies that has been shortlisted for Germany's import auction scheme, H2Global where a final result is awaited.
Platts, a part of S&P Global Commodity Insights, assessed Oman hydrogen produced via alkaline electrolysis at $2.74/kg on Feb. 29, stable from a month earlier.
Platts assessed Japan hydrogen produced via alkaline electrolysis at $3.41/kg on Feb. 29, rising 6.2% from a month earlier.