Scatec ASA signed an agreement with ACME Group to establish a 50/50 JV to design, develop, build, own and operate a large-scale green ammonia facility in Oman.

The first phase of the facility is expected to produce 100,000 tpy of green ammonia with about 300 MW of electrolyzer capacity and powered by 500 MW of solar. The facility will be located in the Duqm Special Economic Zone of Oman. Once fully developed the facility is expected to produce up to 1.2 MMtpy of green ammonia.

“Oman has excellent solar resources and a strategic location for production of green ammonia. Acme Group has been in the forefront of green ammonia production with this project, and in Scatec we can capitalize on our expertise in renewables, project structuring and financing, execution and operation to accelerate the decarbonization of the world. As part of JV, we look forward to working with the Government of Oman and support them in their endeavor to make Oman a hub of Green Hydrogen and Ammonia,” said CEO Raymond Carlsen.

There is a growing need to accelerate decarbonization of hard-to-abate industries through Power-to-X solutions such as production of hydrogen, ammonia and other critical feedstocks powered by renewable energy. Industry analysts forecast global annual demand for green ammonia to reach up to 200 MMt by 2050.

ACME Group is a pioneer in cleantech sectors such as solar, green hydrogen and ammonia development. The Company has developed the Oman project over the last 18 months and has already set up the world’s first single-location integrated solar power to green ammonia facility at Bikaner Rajasthan.

The partners are in advanced discussions with reputable off-takers for 20–25-year contracts which will lay the foundation for financing of the project. The partners expect to fund the facility through equity and project finance debt.

“We are delighted to partner with Scatec in developing one of the largest and earliest green ammonia projects in the world. This facility will have 1.2 MMtpy capacity of green ammonia production and can potentially be further expanded in the future at the same location. Given the strategic location of the project, technical insights & cost-effective solutions that Acme has developed for the project of this kind, along with internationally proven project development capabilities of Scatec, I believe jointly we will be a formidable player in accelerating adoption of this green fuel globally,” said Manoj Upadhyay, Founder & Chairman of Acme Group. 

The overall schedule for the project is under development, but the partners share the ambition for this facility to be one of the first commercial large-scale green ammonia facilities in operation globally.