Yara, ACME ink new renewable ammonia supply deal
By on April 04, 2024
100,000 tons per year from Oman
Click to learn more. Manoj Upadhyay (ACME, left) and Magnus Ankarstrand (Yara, right) with the signed supply agreement. Source: Yara.
After 18 months of negotiations, Yara and ACME have signed a firm and binding agreement for the supply of ammonia from ACME’s under-development project in Oman. A term sheet was initially signed between the pair in July 2022. In the announcement, Yara notes that regulatory and certification frameworks have evolved significantly during the negotiation process, “creating a suitable environment for such long-term contracts”. Phase one of the Duqm project in Oman is currently under construction, with production expected to start in 2027. Ammonia produced in Duqm will be RFNBO compliant.
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. This agreement demonstrates the power of partnerships and collaboration to develop value chains that reduce emissions.
Magnus Ankarstrand, President Yara Clean Ammonia in his organisation’s official press release, 1 Mar 2024
We are pleased to have concluded the deal with Yara who will serve as an anchor customer for our solar based ammonia project being developed in Oman. This agreement is only a start and will facilitate further cooperation between the two companies while playing a vital role in accelerating the adoption of green hydrogen and its derivatives. We have had a number of firsts to our credit in this sector and with the signing of this contract, we aim to become the world’s first large scale producer of green ammonia.
Ashwani Dudeja, Director ACME Group in Yara’s official press release, 1 Mar 2024
Yara’s “scalable distribution system” for renewable ammonia noted in the announcement has been a work-in-progress over the last few years. Last year, Yara agreed to allow Spanish energy giant Cepsa access to its ammonia infrastructure footprint to enable the delivery of renewable ammonia produced in the Mediterranean to northwest Europe. Yara recently chartered an ammonia carrier from MOL in anticipation of increased ammonia trade throughout APAC, and is exploring upgrades to existing European terminals to facilitate increased import volumes (Rostock and Brunsbüttel).
In April 2022, Yara and Azane Fuel Solutions announced the development of an ammonia bunker fuel network across Scandinavia to supply shipping, including vessels such as the under-construction Yara Eyde.Yara will also work with Bunker Holdings to identify new opportunities for ammonia bunker fuel.