Yara, a leading Norwegian company in crop nutrition and global ammonia trading, has finalized an agreement with GHC SAOC, a division of India’s Acme Cleantech Solutions, for the long-term supply of low-carbon ammonia. This agreement comes after extensive negotiations spanning 18 months, amid changing regulatory and certification environments that have now made such forward-thinking contracts possible.
Yara is a global agricultural company focused on sustainable crop nutrition and environmental solutions. With a presence in over 60 countries, Yara provides farmers with products, knowledge, and digital tools to optimize crop yields while reducing environmental impact. The company is committed to promoting sustainable agriculture and food security worldwide.
ACME Cleantech Solutions is a leading provider of clean energy solutions in India. Specializing in solar power generation, ACME offers a range of products and services, including solar panels, inverters, and installation services. The company is dedicated to promoting renewable energy and reducing carbon emissions through innovative and sustainable solutions.
Under this significant deal, Acme will provide Yara with 100,000 tons of renewable ammonia annually, sourced from the initial phase of its project in Oman, scheduled to start in 2027. This partnership is notable for potentially being the first of its kind in terms of scale and duration, focusing on renewable ammonia.
The project is anticipated to have a substantial impact on global greenhouse gas reductions, with an estimated decrease of up to 5 million tons of CO2 equivalents over its lifespan. This move is in line with strict EU regulations, including the Renewable Energy Directive, showcasing a strong commitment to sustainable practices.
Magnus Ankarstrand, President of Yara Clean Ammonia, emphasized the strategic significance of a new deal. He particularly highlighted the crucial role of renewable ammonia in establishing a sustainable supply chain. This chain would benefit various sectors such as shipping, food production, power generation, and industry. The deal underscores the importance of collaborative efforts in creating eco-friendly value chains.
Ashwani Dudeja, serving as a Director at ACME Group, expressed his excitement about the partnership with Yara. This collaboration is expected to position ACME as a trailblazer in green ammonia production. Notably, this partnership aims not only to set a precedent but also to encourage further cooperation in promoting green hydrogen and its derivatives.
Oman’s promising renewable energy landscape, coupled with its strategic geographical location and strong government backing, is positioning the country as a key hub for green ammonia production. Concurrently, Yara is utilizing its extensive global reach and proficiency in ammonia logistics and trade to bolster the renewable ammonia market, a pivotal move in the broader effort towards industry-wide decarbonization.
