Yara and ACME sign a binding agreement for supply of green ammonia
Yara, a leading Norwegian crop nutrition company and a global leader in ammonia trade and shipping, and GHC SAOC, a wholly owned subsidiary of Acme Cleantech, a leading renewable energy company in India, has signed a firm and binding agreement for supply of ammonia with reduced CO2 emissions from Acme to Yara on a long-term basis, according to the company's release.
Both companies had previously signed a non-binding offtake Term Sheet and the current agreement concludes 18 months of negotiations during which the regulatory framework and certification regime have evolved significantly, creating a suitable environment for such long-term contracts.
The long-term offtake agreement between Yara and Acme covers the supply of 100 000 tons per annum of renewable ammonia and possibly the world’s first arm’s length contract for renewable ammonia of this scale and tenure. Over its life cycle, the project will help reduce global GHG emissions by up to 5.0 million tons of CO2 equivalents. In the base case, the renewable ammonia will be supplied by Acme from Phase-1 of its Oman project with an expected start date in 2027 and will comply with the EU RFBNO and Renewable Energy Directive requirements.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry’s only global crop nutrition company. In 2023, Yara reported revenues of USD 15.5 billion.
Yara Clean Ammonia operates the largest global ammonia network with 15 ships and has, through Yara, access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world. Revenues and EBITDA for FY 2023 were USD 1.9 billion and USD 101 million respectively. Yara Clean Ammonia is headquartered in Oslo, Norway.
Acme Group is one of the largest renewable Independent Power Producer in India with a portfolio of more than 8.5 GWp of renewable energy capacity under operation and various stages of implementation. In 2021, Acme built what is one of the world’s first Green Ammonia plant in Bikaner, Rajasthan and in 2022 obtained the world’s first certification for green ammonia from Oman project by TUV Rhineland.
