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.
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.