Yara and ACME Cleantech Finalize Groundbreaking Agreement for Renewable Ammonia Supply

Yara, a Norwegian leader in crop nutrition and a major player in global ammonia trading, has entered into a definitive agreement with GHC SAOC, part of India’s Acme Cleantech Solutions, for the long-term supply of low-carbon ammonia. This deal marks the culmination of 18 months of detailed negotiations, set against a backdrop of evolving regulatory and certification landscapes that have now made such forward-looking contracts feasible.

Under this landmark agreement, Acme will supply Yara with 100,000 tons of renewable ammonia annually, sourced from the initial phase of its project in Oman, slated to commence in 2027. This venture is noted for being potentially the first of its kind at this scale and duration, focusing on renewable ammonia. The project is expected to significantly impact global greenhouse gas reductions, with an estimated decrease of up to 5 million tons of CO2 equivalents over its lifecycle. This initiative aligns with stringent EU regulations, including the Renewable Energy Directive, highlighting its commitment to sustainable practices.

Magnus Ankarstrand, President of Yara Clean Ammonia, highlighted the deal’s strategic importance in advancing the hydrogen economy, emphasizing the role of renewable ammonia in creating a sustainable supply chain across shipping, food production, power generation, and industrial sectors. This agreement underscores the significance of collaborative efforts in establishing eco-friendly value chains.

Ashwani Dudeja, a Director at ACME Group, expressed enthusiasm about the partnership with Yara, which positions ACME as a pioneering force in green ammonia production. This collaboration not only sets a precedent but also aims to foster further cooperation in promoting green hydrogen and its derivatives.

Oman’s advantageous renewable energy conditions, strategic geographical position, and government support are key factors in establishing it as a prime location for green ammonia production. ACME is at the forefront of this initiative, planning a facility with a yearly capacity of 900,000 tons of green ammonia to be developed in stages. Meanwhile, Yara is leveraging its global presence and expertise in ammonia logistics and trade to expand the renewable ammonia market, a crucial step towards industry-wide decarbonization.