Norwegian developer Scatec and ACME Group have signed a term sheet with Yara for the offtake from the first phase of a green ammonia plant in Oman.
ACME and Scatec are working on the facility, the first phase of which will be built on over 12km square of land to produce 100,000 tonnes of green ammonia a year 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 1.1 million tonnes of green ammonia annually.
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 projects second phase as it develops.
Yara will use the green ammonia to contribute to green fertiliser and for decarbonising other industries like shipping, power, and steel industry.
Yara Clean Ammonia president Magnus Krogh Ankarstrand 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.”
ACME Group chief executive Rajat Seksaria 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 Oman Authorities for their proactive support in enabling fast track development of this project.”
Scatec chief executive Terje Pilskog 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.”