Term sheet signed for renewable ammonia sale from Oman
By on July 26, 2022
Yara, ACME, Scatec reach agreement
Yara will be the off-taker for renewable ammonia from ACME and Scatec’s new production plant in Oman. Yara Clean Ammonia has committed to complete off-take from the first phase of the project: 100,000 tonnes per year, with a potential for more as the plant expands towards full capacity of 1.1 million tonnes per year. The press release indicates the move from Yara is not just about decarbonising their own operations, but establishing a market globally for the new commodity:
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 fertilizer globally.
Yara Clean Ammonia President Magnus Ankarstrand in his organisation’s official press release, 15 July 2022
For project developers Scatec and ACME, the new agreement represents a significant milestone:
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.
ACME Group CEO Rajat Seksaria in Yara’s official press release, 15 July 2022
This is a crucial milestone for Scatec with ACME and Yara in this exciting project. The project is part of our strategy to capitalize on our experience in large-scale renewables in attractive regions, and the agreement will further our ambitions within green hydrogen and ammonia.
Scatec CEO Terje Pilskog in Yara’s official press release, 15 July 2022
And the news comes as Scatec and ACME have secured the land rights to develop phase one of the Duqm project. 12 km2 in the Duqm Special Economic Zone will host new build solar generation and the ammonia production facility.
Off-take success stories
As any developers will tell you, securing off-takers for new ammonia projects is a crucial piece of the puzzle. Already this year we’ve seen a number of promising deals signed in this regard:
- Fortescue Future Industries securing a 5 million tonne per year hydrogen off-take deal with German energy giant E.ON.
- Trammo committing to full off-take from Teal Corporation’s under-development hydro-ammonia plants in Canada, with as much as 2.5 million tonnes ammonia per year production capacity planned.
- The Hydrogen Utility and Orica are currently in discussions for off-take of future renewable ammonia production at H2U’s Gladstone plant.
- DEME, OQ and Uniper are still exploring terms for off-take from the HYPORT® Duqm green ammonia project in Oman.
- OCI, AnQore and Elix Polymers will establish a Europe-wide value chain for polymers manufacturing, based on supply of green ammonia from OCI.
- And guaranteeing the first full supply chain for e-fuels earlier this year, with a seven-organisation partnership securing the supply of more than 700,000 tonnes of renewable methanol fuel by 2025.