Norwegian renewables developer Scatec is teaming up with ACME Group from India to establish a 50:50 joint venture to design, develop, build, own and operate a green ammonia plant in Oman powered by a 500MW solar farm.
The first phase of the facility is expected to produce 100,000 tonnes of green ammonia a year with about 300MW of electrolyser capacity.
The plant will be located in the Duqm Special Economic Zone of Oman.
Once the facility is fully developed it is expected to produce up to 1.2 million tonnes of green ammonia a year.
The partners said they are in advanced discussions with reputable off-takers for 20–25-year contracts which will lay the foundation for financing of the project.
They expect to fund the facility through equity and project finance debt.
Scatec chief executive Raymond Carlsen said: “Oman has excellent solar resources and a strategic location for production of green ammonia.
“Acme Group has been in the forefront of green ammonia production with this project, and in Scatec we can capitalise on our expertise in renewables, project structuring and financing, execution and operation to accelerate the decarbonisation of the world.
“As part of JV, we look forward to working with the Government of Oman and support them in their endeavour to make Oman a hub of Green Hydrogen and Ammonia.”
Acme Group founder and chairman Manoj Upadhyay said: “We are delighted to partner with Scatec in developing one of the largest and earliest green ammonia projects in the world.
“This facility will have 1.2 million tonnes per annum capacity of green ammonia production and can potentially be further expanded in the future at the same location.
“Given the strategic location of the project, technical insights and cost-effective solutions that Acme has developed for the project of this kind, along with internationally proven project development capabilities of Scatec, I believe jointly we will be a formidable player in accelerating adoption of this green fuel globally.”