Acme Solar inks land agreement to set up green ammonia plant in Oman

NEW DELHI :

India’s largest pure-play solar platform Acme Solar Holdings Ltd on Monday inked a land agreement to set up one of the world’ largest green ammonia projects at Special Economic Zone at Port of Duqm in Oman with a planned investment of $3.5 billion, the firm said in a statement. 

Acme Solar Holdings Ltd and The Oman Company for the Development of the Special Economic Zone at Duqm (Tatweer) plan to make this investment in the West Asian country. This manufacturing facility planned at Duqm is to supply green ammonia to Europe, America and Asia region. Tatweer is the fully owned subsidiary of Oman's Public Authority for Special Economic Zones and Free Zones (OPAZ).

 “The agreement was signed with The Public Authority for Special Economic Zones and Free Zones, a Government authority of Oman," the statement said.

Prime Minister Narendra Modi on 15 August announced India’s National Hydrogen Mission in the backdrop of India spending Rs12 trillion annually to meet the energy needs. Green hydrogen is produced by splitting water into hydrogen and oxygen using an electrolyzer powered by electricity from renewable energy sources such as wind and solar can be a game changer for India, which imports 85% of its oil and 53% of gas demand.

 “We have hired environmental consultants and owner’s engineers Black & Veatch and we plan to start the construction at Oman as soon we commission our first green hydrogen and green ammonia plant at Bikaner in India. The plant in Oman would be developed in phases and the first phase is likely to be commissioned by end of 2022," Manoj K. Upadhyay, founder and chairman, ACME Group said in the statement.

Acme Solar, founded in 2003 by Upadhyay, has been looking at new business opportunities in energy storage, green hydrogen and ammonia.

 “In March 2021, The Oman Company for the Development of the Special Economic Zone at Duqm (Tatweer) and ACME Group signed a memorandum of understanding (MoU) to set up a large scale facility to produce Green Hydrogen and Green Ammonia. The plant will be an integrated facility using 3 GWp of solar and 0.5 GWp of wind energy to produce 2,400 TPD of green ammonia with an annual production of approx. 0.9 million tons," the statement said.

Stressing upon the need for energy independence, PM Modi while announcing the mission said that the plan involves India becoming a global hub for green hydrogen production and exports. He said that for India to progress and become self dependent, it is important to become energy independent.

 “ACME Group is in the process of commissioning the world’s first integrated green hydrogen and green ammonia plant in Bikaner, India. Green hydrogen will be produced using 5 MWp, expandable to 10 MWp, from the solar plant, which is an integral part of the project," the statement said.

Acme Solar is the last entirely promoter-owned large green energy platform in India and has an operational 2.2 gigawatts (GW) projects out of its 6 GW portfolio. 

Acme Solar Holdings Ltd recently roped in Brookfield Renewable Partners for jointly setting up solar project in Rajasthan, as part of its playbook to sell equity stake in its projects. Also, Denmark’ state owned fund IFU, United Nations Office for Project Services S3i, and Norway’ Scatec acquired stakes in separate solar projects of Acme Solar in Rajasthan.