Korean green energy company Lupro will set up a JV with an undisclosed Omani company to produce green ammonia for export to Thailand and Korea, according to statements here and here. The JV aims to produce 5 mn tons of green ammonia between from 2027 to 2032. Lupro will hold a majority of 80% stake in the JV.

The project already secured an offtaker: Lupro signed a KRW 6.5 tn (c. USD 4.5 bn) supply agreement with Thailand’s MA Corporation for 10 years, according to a separate press release.

More about the plant: Construction of the new green ammonia facility will begin this year in the Duhuk FreeEconomic Zone. The first production phase will be powered by 2 GW of solar and wind capacity, with exports to Thailand planned to kick off in 2027. The contracting parties also have plans for a second phase to target other Asian markets like Singapore, Malaysia, and South Korea, with 2.5 mn tons of annual production powered by up to 5 GW of renewables.

The upside for Lupro: Oman’s much lower costs of green ammonia production — at just KRW 5 (c.USD 0.0034) per KWh — is advantageous to Lupro compared to KRW 330 (c.USD 0.26) in Korea.

REMEMBER- Oman has big green ammonia ambitions: The state-owned Hydrom signed an agreement with a consortium of EDF and UK’s Yamna for a large-scale project in Duqm that will produce 1.38 mn tons of green hydrogen and 1 mn tons of green ammonia annually. In 2023, Hydrom also signed an agreement with the Hyport Duqm Consortium — a JV between DEME Concessions and OQ Alternative Energy — to construct a green hydrogen production facility that would produce some 1 mn tons of green ammonia.

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