ACME's Duqm project receives first tranche of $500mn funding

20/04/2025 04:38 AST

ACME Group, which is developing a green hydrogen and ammonia project in the Special Economic Zone at Duqm (SEZAD), announced that it has received the first tranche of over $500mn in funding for its green hydrogen and ammonia project in Oman.

The financing reflects strong confidence from international financial institutions in the project's viability, as well as in the role played by SEZAD in attracting high-quality investments in green hydrogen and clean energy sectors.

In a press statement, Dr Saeed bin Khalifa al Quraini, Director General of the Investment Development Sector at the Public Authority for Special Economic Zones and Free Zones (OPAZ) and official spokesperson for the Authority, said that securing this funding for ACME's Duqm project highlights international confidence in the projects underway in the region and reinforces Duqm's appeal as an investment destination.

He added, "ACME's project is one of the strategic initiatives in the green hydrogen sector and marks the first of its kind in Oman to secure the necessary funding and sign a long-term off-take agreement. This strengthens Duqm's leadership in the green hydrogen industry and supports the national strategy to achieve carbon neutrality by 2050, along with the government's broader energy transition objectives."

The secured financing, combined with the previously signed off-take agreement, provides a solid financial foundation for the ACME project's continuity and long-term market commitment. This will enable successful and timely execution as planned.

The ACME Group's project aims to produce clean, renewable energy aligned with Oman's vision of becoming a leader in sustainable energy and reducing carbon emissions. The project has now entered the implementation phase, with contracts signed and purchase orders issued for the required equipment and technology. Work is currently in progress, in collaboration with contractors and technical service providers, to complete the necessary infrastructure, demonstrating the commitment to meet timelines and commence pilot production of green hydrogen as scheduled.

Gursharan Jassal, Country Manager for ACME in Oman, expressed his appreciation for this milestone, stating, "Receiving the first tranche of funding reflects the trust international institutions have in the success of this project. This is a significant step not only for ACME but for the entire green hydrogen sector in Oman."

He added, "Securing both the funding and the long-term off-take agreement represents a crucial step towards realising the global green hydrogen vision - not only for Oman but for the broader energy market. With the support of our partners and contractors, we are steadily progressing towards producing the first batch of green hydrogen by the first quarter of 2027, marking the dawn of a new era in sustainable energy."

The project's first-phase production capacity is set at 100,000 tonnes of green ammonia annually, with plans for future expansion to reach 1.1mn tonnes per year.

Last year, ACME signed a binding long-term off-take agreement with Norwegian fertiliser giant Yara to supply 100,000 tonnes of green ammonia per year from its Duqm project, which is expected to commence operations in Q1 2027. Yara, renowned for its expertise in ammonia production, logistics, and global trade, is actively expanding its green ammonia portfolio.

Muscat Daily