Various elements – different definitions for “green” hydrogen, subsidy structures, and transportation & logistics costs – all contribute to the gap between discovered prices for the H2Global and SECI renewable ammonia auctions. More SECI auction results are expected in the coming days and weeks.
ACME is the first successful bidder in a series of renewable ammonia reverse auctions to be facilitated by the Solar Energy Corporation of India. The discovered price of $641 per ton represents a substantial drop from the previous benchmark of $1,153 per ton of renewable ammonia, set in H2Global’s first auction late last year.
ACME has selected two Chinese technology providers for the first phase of its renewable ammonia project in Oman, which will produce renewable ammonia from 2027.
OCI Global will deliver ammonia produced at its Texas plant to COMPO EXPERT in Germany, replacing 25% of its feedstock with low-carbon ammonia from this year. Meanwhile, the Indian Farmers Fertiliser Cooperative Limited (IFFCO) will offtake 200,000 tons of renewable ammonia per year from ACME’s under-development plant in Gopalpur, Odisha. This second deal will be facilitated by the use of “Internationally Transferred Mitigation Outcomes” (or ITMOs), a credit mechanism established by the Paris Agreement.
The pair have signed a firm and binding agreement for the supply of ammonia from ACME’s under-development project in Oman. 100,000 tons per year of RFNBO-compliant, renewable ammonia will be delivered from 2027, feeding into Yara’s global distribution system.
ACME and IHI have signed an offtake agreement for the supply of renewable ammonia from the pair’s under-development production plant in Odisha, eastern India. On a long-term basis, 400,000 tons per year will be transported, with production to begin in 2027. A number of other Indian production projects were launched this month.
REC Limited has committed nearly $5 billion total to three new energy projects in Odisha state, including renewable ammonia projects to be developed by Avaada and ACME Group. Avaada also announced that its facility will include a “cutting-edge” ammonia storage facility, to be developed at Gopalpur Port. The new funds follow a $1 billion investment in Avaada from infrastructure giant Brookfield earlier this year.
The pair will jointly develop a 1.3 million tonnes per year renewable ammonia production plant in the Gopalpur Industrial Park in Odisha, northeast India. From the adjacent port, ammonia will be shipped domestically, and exported to key global markets.
ACME plans to develop an integrated hydrogen & ammonia project with a 1.2 million tonnes per year annual capacity at the Port of Victoria on the Texas Gulf Coast.
A $325 million investment from Macquarie Asset Management will support Atlas Agro’s new Pacific Green Fertilizer Plant in Washington state, USA. FID on the plant is due early next year, which will produce 700,000 tonnes of zero-carbon nitrate fertiliser each year.
In India, ACME Group has secured two loans from REC Limited: $500 million to fully finance the first phase of the ACME’s Duqm renewable ammonia project, and $2.5 billion to support the first phases of ACME’s “round the clock” renewable power projects in Odisha and Tail Nadu.
Although a globally significant ammonia producer, India still relies on ammonia & fertilizer imports to support its agricultural sector. In our recent episode of Ammonia Project Features, we explored the potential of domestically-produced renewable ammonia to both replace these imports and position India as an ammonia energy giant. Excellent solar PV resources, plentiful government support and access to “round-the-clock” renewables were all highlighted as key drivers for India to meet its renewable ammonia potential.
Momentum is building to establish a domestic renewable ammonia sector in India. To explore opportunities and outline key next steps, we are joined by ACME Group, University College London, and the India Hydrogen Alliance.
ACME and IHI will assess the feasibility of potential joint projects in the ammonia energy space, including production, transportation, distribution, and power generation. Also this week, IHI and GE have presented their findings from an ammonia-powered gas turbine feasibility study, with some favorable fuel economics for ammonia.
Electrolysis-based ammonia production peaked worldwide around 1970, before the economies of scale and cheap gas feedstock led to its decline. With decarbonization and climate-neutral industrial processes now a critical priority, electrolysis-based ammonia production has re-emerged as a long-term solution. From a base of 10,000 tonnes per year worldwide production in 2020, as much as 100 million tonnes per year of electrolysis-based ammonia could be produced by the end of this decade, driven by a dramatic roll-out of renewable energy generation and installed electrolyzer capacity.
The number of renewable hydrogen-based projects planned for the Suez Canal Economic Zone has now reached fifteen. Of the seven new MoUs signed in late August, four are targeting renewable ammonia production. Saudi-based alfanar, African energy developer Globeleq, Mediterranean Energy Partners and renewable energy developer Actis are all planning renewable ammonia production plants, with ACME Group also signing an MoU for a multi-million tonne renewable hydrogen plant in the SCZONE.
Yara Clean Ammonia has committed to complete off-take from the first phase of ACME and Scatec’s new renewable ammonia production plant in Oman. Yara will off-take 100,000 tonnes per year, with a potential for more as the plant expands towards full capacity. The announcement joins a series promising off-take agreements signed within the last twelve months.
ACME Group and the Government of Karnataka have signed a new MoU for a renewable hydrogen & ammonia project in southwest India. The $7 billion project will feature a 1.2 million tonne per year ammonia plant. Karnataka will sit alongside ACME’s renewable ammonia projects in Rajasthan (pilot-scale) and Oman (mega-scale). In related news, ACME signed a new MoU with NYK Line in late May for the latter to become the “strategic shipping partner” for its ammonia projects.
TÜV Rheinland has issued a world-first “Green Hydrogen and Green Ammonia Certificate” to Scatec & ACME’s solar ammonia mega-project in Oman. The greenfield project has met all criteria for TÜV’s H2.21 Carbon-Neutral Hydrogen standard. The certification will allow Scatec & ACME better access to key international markets. In related news, Dutch hydrogen trading platform HyXchange has delivered its very first green hydrogen certificate as work continues to implement its Guarantee of Origin scheme.
Thanks to Indian news channel CNBCTV18, take a three-minute tour of ACME Group’s green hydrogen & ammonia production plant in Bikaner, Rajasthan. The demonstration-sized facility is the first green hydrogen plant in India, powered by 5 MW of solar panels.
Scatec will enter into a 50:50 joint venture with ACME to design, develop, build, own and operate a planned large-scale, green ammonia facility in the Duqm Special Economic Zone of Oman. At full capacity the facility will produce 1.2 million tonnes of green ammonia per year, and the partners aspire to be “one of the first” commercial green ammonia facilities operating in the world. Advanced discussions for long-term off-take are already in progress. The project was launched last March by ACME and Oman government authority Tatweer, and added KBR as technology partner last October.
SalalaH2's consortium partners (OQ, Marubeni, Linde and Dutco) will invest $1 billion bringing their green product export hub to life in Salalah, southern Oman. First announced in October 2021, the project features 1 GW of wind and solar capacity (new build & existing), which will power 400 MW of electrolysers, feeding an existing ammonia production plant owned & operated by OQ.
ACME has selected KBR to provide ammonia synthesis technology for its new green hydrogen & ammonia production facility to be built in Duqm, Oman. The project was first announced in March 2021, and has now grown to $3.5 billion in investment size, with energy to be provided by 3 GW of solar panels and 0.5 GW onshore wind power. The 2,400 tonnes per day (or 0.9 million tonnes per year) renewable ammonia facility is planned to be operational in 2022.
Welcome to the Ammonia Wrap: a summary of all the latest announcements, news items and publications about ammonia energy. This week: updates from India, the PROMETEO project - continuous hydrogen production by SOEC, Viridis Bulk Carriers - a new zero-emissions shipping company, Korean Register AiP for ammonia bunkering vessel, two green hydrogen import MoUs for the Port of Rotterdam and Haldor Topsoe and Nel team up to offer green fuel solutions.