Category

Countries

Yara and ACME Finalize Binding Deal for Green Ammonia Supply
Yara and ACME Finalize Binding Deal for Green Ammonia Supply

Yara and ACME Finalize Binding Deal for Green Ammonia Supply

  • 01-Mar-2024 7:44 PM
  • Journalist: Emilia Jackson

Yara, a globally recognized Norwegian crop nutrition company and a leader in ammonia trade and shipping, has entered into a significant partnership with GHC SAOC, a wholly owned subsidiary of Acme Cleantech, a prominent renewable energy company based in India. The collaboration culminated in the formalization of a firm and binding agreement for the long-term supply of ammonia with reduced CO2 emissions from Acme to Yara.

The agreement's inception follows 18 months of rigorous negotiations and builds upon the foundations laid in a previously signed non-binding offtake Term Sheet by both Yara and Acme. Throughout the negotiation period, there were noteworthy developments in the regulatory framework and certification regime, setting the stage for such comprehensive and long-term contracts that align with the global push for sustainable practices.

At the core of this strategic collaboration is a long-term offtake agreement between Yara and Acme, encompassing the supply of 100,000 tons per annum of renewable ammonia. This landmark agreement positions itself as a potential pioneer, potentially becoming the world's first arm's length contract for renewable ammonia on such a large scale and with an extended tenure. The project's significance extends beyond its scale, with the potential to play a pivotal role in reducing global greenhouse gas (GHG) emissions by up to 5.0 million tons of CO2 equivalent over its life cycle. In the base case scenario, the renewable ammonia will be sourced from Phase-1 of Acme's ambitious Oman project, with an expected start date in 2027, ensuring compliance with the stringent requirements of the EU RFBNO and Renewable Energy Directive.

Oman, with its favorable conditions for renewable energy, strategic geographical location, and proactive government approach, emerges as an attractive hub for the production of green ammonia. ACME, underlining its commitment to sustainability, is spearheading the construction of a green ammonia project in Oman, featuring a planned capacity of 900,000 tons per annum, to be developed in multiple phases. Yara, leveraging its extensive expertise in global ammonia production, logistics, and trade, actively contributes to expanding the market for renewable ammonia – a crucial component in the ongoing global efforts to decarbonize various industries.

The formalization of this agreement represents a significant milestone in the journey towards a more sustainable and environmentally friendly future. As the world continues to grapple with the challenges posed by climate change, collaborative efforts between industry leaders like Yara and ACME are pivotal in driving innovation and sustainable practices that contribute to a greener and more resilient planet.

Related News

MoU Inked for Collaborative Development of Ammonia-Powered Bulk Vessels in Japan
  • 12-Apr-2024 12:43 PM
  • Journalist: Francis Stokes
Mitsubishi Shipbuilding's Ammonia Fuel System Receives Approval from ClassNK
  • 12-Apr-2024 11:18 AM
  • Journalist: Bob Duffler
OCI Global Supplies Low-Carbon Ammonia for Compo Expert Fertilizer
  • 11-Apr-2024 3:46 PM
  • Journalist: Jacob Kutchner
Mitsubishi Shipbuilding Secures Contract for Ammonia Fuel Supply System
  • 11-Apr-2024 4:02 PM
  • Journalist: Emilia Jackson