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Yara (YARIY) & Acme Team Up for Green Ammonia Decarbonization
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Yara International ASA (YARIY - Free Report) , a prominent Norwegian crop nutrition company and global leader in ammonia trade and shipping, recently officially signed a binding agreement with GHC SAOC, a fully-owned subsidiary of Acme Cleantech, a leading renewable energy company in India. This agreement signifies a significant milestone in the supply of ammonia with reduced CO2 emissions from Acme to Yara on a long-term basis.
Prior to this, both companies had entered into a non-binding offtake Term Sheet and after 18 months of negotiations, a firm agreement was reached. Throughout the negotiation period, the regulatory framework and certification regime evolved significantly, paving the way for such long-term contracts.
The long-term agreement between Yara and Acme entails the supply of 100,000 tons per annum of renewable ammonia, potentially marking the world's first arm's length contract for renewable ammonia of this scale and tenure. The project is projected to reduce global GHG emissions by up to 5 million tons of CO2 equivalents over its lifecycle. Initially, the renewable ammonia will be supplied by Acme from Phase-1 of its Oman project, scheduled to commence in 2027 and will comply with the EU RFBNO and Renewable Energy Directive requirements.
Yara emphasizes its leading role in advancing the hydrogen economy across various industries. The renewable ammonia sourced from Oman will seamlessly integrate into its scalable distribution network, establishing a dependable, secure and cost-effective supply chain for low-emission ammonia across diverse market segments. This partnership underscores the significance of collaborative efforts in crafting value chains that effectively reduce emissions.
ACME Group expressed its delight in finalizing the agreement with Yara. It highlighted Yara's pivotal role as a key customer for its solar-based ammonia project in Oman. This collaboration signifies the start of deeper cooperation between the two entities and is poised to accelerate the widespread adoption of green hydrogen and its derivatives. With numerous milestones achieved in the sector, their ultimate aim is to emerge as the world's premier large-scale producer of green ammonia.
Oman's conducive environment for renewable energy, strategic location, and proactive governmental approach position it as an attractive hub for producing green ammonia. ACME is leading the construction of the green ammonia project in Oman, with a planned capacity of 900,000 tons per annum to be developed in phases. Yara, renowned for its expertise in global ammonia production, logistics and trade, is actively expanding the market for renewable ammonia, which is crucial for decarbonizing various industries.
Yara’s shares have lost 31.8% in the past year against a 35% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Yara currently carries a Zacks Rank #5 (Strong Sell).
Givaudan's projected earnings growth rate for the current year is 13.43%. The Zacks Consensus Estimate for GVDNY’s current-year earnings has been revised upward by 5.1% in the past 60 days. The company’s shares have rallied 38.3% in the past year.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $3.97 per share, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have increased 27.1% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised upward by 4.3% in the past 30 days. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 70.6%. The company’s shares have surged 71.2% in the past year.
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Yara (YARIY) & Acme Team Up for Green Ammonia Decarbonization
Yara International ASA (YARIY - Free Report) , a prominent Norwegian crop nutrition company and global leader in ammonia trade and shipping, recently officially signed a binding agreement with GHC SAOC, a fully-owned subsidiary of Acme Cleantech, a leading renewable energy company in India. This agreement signifies a significant milestone in the supply of ammonia with reduced CO2 emissions from Acme to Yara on a long-term basis.
Prior to this, both companies had entered into a non-binding offtake Term Sheet and after 18 months of negotiations, a firm agreement was reached. Throughout the negotiation period, the regulatory framework and certification regime evolved significantly, paving the way for such long-term contracts.
Yara International ASA Price and Consensus
Yara International ASA price-consensus-chart | Yara International ASA Quote
The long-term agreement between Yara and Acme entails the supply of 100,000 tons per annum of renewable ammonia, potentially marking the world's first arm's length contract for renewable ammonia of this scale and tenure. The project is projected to reduce global GHG emissions by up to 5 million tons of CO2 equivalents over its lifecycle. Initially, the renewable ammonia will be supplied by Acme from Phase-1 of its Oman project, scheduled to commence in 2027 and will comply with the EU RFBNO and Renewable Energy Directive requirements.
Yara emphasizes its leading role in advancing the hydrogen economy across various industries. The renewable ammonia sourced from Oman will seamlessly integrate into its scalable distribution network, establishing a dependable, secure and cost-effective supply chain for low-emission ammonia across diverse market segments. This partnership underscores the significance of collaborative efforts in crafting value chains that effectively reduce emissions.
ACME Group expressed its delight in finalizing the agreement with Yara. It highlighted Yara's pivotal role as a key customer for its solar-based ammonia project in Oman. This collaboration signifies the start of deeper cooperation between the two entities and is poised to accelerate the widespread adoption of green hydrogen and its derivatives. With numerous milestones achieved in the sector, their ultimate aim is to emerge as the world's premier large-scale producer of green ammonia.
Oman's conducive environment for renewable energy, strategic location, and proactive governmental approach position it as an attractive hub for producing green ammonia. ACME is leading the construction of the green ammonia project in Oman, with a planned capacity of 900,000 tons per annum to be developed in phases. Yara, renowned for its expertise in global ammonia production, logistics and trade, is actively expanding the market for renewable ammonia, which is crucial for decarbonizing various industries.
Yara’s shares have lost 31.8% in the past year against a 35% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Yara currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Basic Materials space are Givaudan SA (GVDNY - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Carpenter Technology Corporation (CRS - Free Report) and Hawkins, Inc. (HWKN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Givaudan's projected earnings growth rate for the current year is 13.43%. The Zacks Consensus Estimate for GVDNY’s current-year earnings has been revised upward by 5.1% in the past 60 days. The company’s shares have rallied 38.3% in the past year.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $3.97 per share, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have increased 27.1% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised upward by 4.3% in the past 30 days. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 70.6%. The company’s shares have surged 71.2% in the past year.