Yara, ACME and Scatec sign term sheet for sale of green ammonia from Oman

Geneva, Gurgaon and Oslo, 15 July 2022: ACME group ("ACME”) a pioneer in cleantech sector such as solar, green hydrogen and ammonia development, Scatec ASA ("Scatec”) a leading renewable power producer and Yara International ASA ("Yara”) a leading global ammonia player, have signed a term sheet for offtake from the first phase of green ammonia from Oman.

Oman has excellent conditions for renewable energy and a strategic location to produce green ammonia for export to both Europe and Asia, which are the pacesetters in reducing CO2-emissions.

ACME and Scatec are already evolving the green ammonia project in Oman. The joint venture aims at building a state-of-the art facility. Yara is a front-runner in global ammonia production, logistics and trade and are growing the market for green ammonia that can be used for decarbonising other industries.

ACME and Scatec will begin developing the first phase of the project over 12 km2 of land to produce 100,000 metric tonnes of green ammonia per annum in the Special Economic Zone at Duqm. Once fully developed, a second phase will be added, and the project is expected to produce up to 1.1 million tonnes of green ammonia annually.

The parties have agreed the principal terms for offtake of 100,000 tonnes annually of green ammonia in a first phase, and potential further offtake from the projects second phase as this develops. This agreement is groundbreaking for enabling the partners’ first green ammonia project in Oman. For Yara the green ammonia supply will contribute to produce green fertiliser and for decarbonising other industries like shipping, power, and steel industry.

There is a growing need to accelerate decarbonisation of hard-to-abate industries through Power-to-X solutions such as production of green hydrogen, ammonia and other critical feedstocks powered by renewable energy.

Quote from Mr. Magnus Krogh Ankarstrand, President Yara Clean Ammonia

"Yara Clean Ammonia is working on enabling the clean ammonia market. The green ammonia from Oman will go into our scalable distribution system and contribute to emission-free fuel for deep-sea shipping, power production and fertiliser globally.”

Quote from Mr. Rajat Seksaria, CEO ACME Group

"We are delighted to partner with YARA Clean Ammonia as an offtaker from our under development project in Oman. We hope that this project will be an early success story in the sector and play a vital role in accelerating large scale adoption of green ammonia. We are also grateful to Oman Authorities for their proactive support in enabling fast track development of this project.”

Quote from Mr. Terje Pilskog, CEO Scatec

"This is a crucial milestone for Scatec with ACME and Yara in this exciting project. The project is part of our strategy to capitalise on our experience in large-scale renewables in attractive regions, and the agreement will further our ambitions within green hydrogen and ammonia.”

For further information, please contact:
For analysts and investors: Andreas Austrell, VP Investor Relations, ir@scatec.com
For media: Stian Karlsen, Communications Manager, stian.karlsen@scatec.com  

About Yara Clean Ammonia (YCA)
Yara grows knowledge to responsibly feed the world and protect the planet. Yara Clean Ammonia is uniquely positioned to enable the hydrogen economy in a market expected to grow substantially over the next decades. We aim at significantly strengthening our leading global position as the world’s largest ammonia distributor, unlocking the green and blue value chains, and driving the development of clean ammonia globally.

Building on Yara’s leading experience within global ammonia production, logistics and trade, Yara Clean Ammonia works towards capturing growth opportunities in low-emission fuel for shipping and power, carbon-free food production and ammonia for industrial applications.

Yara Clean Ammonia operates the largest global ammonia network with 12 ships and has access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world, through Yara. Revenues and EBITDA for the last 12 months were USD 3,037 million and USD 166 million respectively as per Q1 2022. Yara Clean Ammonia is headquartered in Oslo, Norway. www.yaracleanammonia.com

About ACME Group
ACME Group (www.acme.in), set up in 2003, is a pioneer in cleantech sectors such as solar, green hydrogen & ammonia and sustainable green protein development. The Company is one of the leading Solar Power Developers in India with project under development & operational portfolio of 8.5 GW. The company is presently constructing 1.8 GW generation capacity which will be one of the largest single location solar generation facilities in the world. In the field of Green Hydrogen & Ammonia besides under development project in Oman, the Company has al-ready set up the world’s first single location integrated solar power to green ammonia facility at Bikaner Rajasthan. The company employs more than 1000 people in India and abroad.

About Scatec ASA
Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy in high growth markets. As a long-term player, we develop, build, own and operate renewable energy plants, with 3.5 GW of installed capacity across four continents today. We are targeting 15 GW of renewable capacity to be in operation or under construction by the end of 2025, delivered by our 600 passionate employees who are driven by a common vision of ‘Improving our Future’.  Scatec is headquartered in Oslo, Norway and listed on the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more, visit www.scatec.com or connect with us on LinkedIn.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act