Norwegian ammonia trade and shipping company Yara and Indian renewable energy company ACME have signed a long-term firm and binding agreement for the supply of ammonia produced in Oman with reduced CO2 emissions.
According to Yara, the agreement is the result of 18-month negotiations during which the regulatory framework and certification regime have evolved and created a suitable environment for such long-term contracts.
The long-term deal 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 million tons of CO2 equivalents, the companies said.
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.
The Indian company is constructing a green ammonia project in Oman with a planned capacity of 900,000 tons per annum to be developed in phases.
“Yara Clean Ammonia is a frontrunner in enabling the hydrogen economy across the shipping, food, power, and industrial sectors. The renewable ammonia from Oman will be part of our scalable distribution system, developing a reliable, safe, and cost-efficient supply chain for low-emission ammonia across different market segments. This agreement demonstrates the power of partnerships and collaboration to develop value chains that reduce emissions,” said Magnus Ankarstrand , President of Yara Clean Ammonia.
Ashwani Dudeja , Director of ACME Group, added: “We are pleased to have concluded the deal with Yara who will serve as an anchor customer for our solar-based ammonia project being developed in Oman. This agreement is only a start and will facilitate further cooperation between the two companies while playing a vital role in accelerating the adoption of green hydrogen and its derivatives. We have had a number of firsts to our credit in this sector and with the signing of this contract, we aim to become the world’s first large scale producer of green ammonia.”
In January this year, ACME also concluded an offtake term sheet with IHI Corporation for the supply of green ammonia from India to Japan.
On the other hand, Yara is making strides toward bringing the world’s first ammonia-powered containership, Yara Eyde, to life, and has recently, together with its partners North Sea Container Line and CMB.TECH, placed a shipbuilding order for this vessel in China. Yara Eyde is expected to be delivered by mid0-2026.