January 06, 2025 [MEP Middle East]- LUPRO, a leading Korean green energy company, has signed a significant agreement with Oman’s largest energy company, Muscat House, and Thailand’s MA Corporation to produce, supply, and sell green ammonia.
The deal, valued at $4.5 billion, was formalised in a ceremony attended by Kim Se-ho, Chairman of LUPRO, Mohammed Al Rumihi, former Minister of Energy and Minerals of Oman, and Achiraj Son Itawan, CEO of MA Corporation.
This partnership marks the beginning of a groundbreaking project in the green ammonia sector, with construction set to begin in 2025.
Construction of green ammonia production facility in Oman
Under the agreement, LUPRO and Muscat House will begin building a green ammonia production facility in the Duhok Economic Free Zone, located on the east coast of Oman, in 2025.
The facility will use a 2 gigawatt (GW) power generation system, drawing on solar and wind energy sources, to produce 1 million tons of green ammonia per year, with a total of 5 million tons over the initial five years. The green ammonia will be supplied to Thailand, with first deliveries expected by 2027.
Kim Se-ho, Chairman of LUPRO, stated: “It costs about 330 won per kilowatt (KW) in Korea, but in Oman, green ammonia can be produced at a cost of 5 won per KW. It is economically viable enough to be established as a new business model in the era of energy transition.”
Expansion plans and global market reach
Following the initial phase, LUPRO and Muscat House aim to expand the power facilities to over 5 GW, enabling them to produce more than 2.5 million tons of green ammonia per year.
The expanded capacity will allow the companies to supply not only Thailand but also other global markets, including Singapore, Malaysia, and South Korea. The total value of the supply over the five years is estimated at $6.5 billion, reflecting the scale and potential of the project.
The green ammonia produced will be used as a raw material for fertilisers and as a sustainable fuel for transportation. Ammonia is considered an ideal storage and transport method for hydrogen, which is central to the hydrogen economy due to its efficiency in storage and transport compared to directly compressing or liquefying hydrogen.
The project’s green ammonia will be produced using renewable solar and wind energy, setting a new standard in energy transition.
Revolutionising energy with green ammonia and hydrogen
LUPRO plans to introduce a new business model by producing green hydrogen using abundant, low-cost electricity from solar and wind sources in the Middle East.
This green hydrogen will then be converted into green ammonia, creating a cost-effective and sustainable energy solution that is economically viable and more affordable than conventional fossil fuels.
LUPRO’s agreement to produce green ammonia in Oman represents a significant step in the development of a circular economy, advancing global sustainability goals while providing a reliable energy source to meet the demands of various industries.
The project will not only strengthen the relationship between Oman, Thailand, and Korea but also pave the way for further innovations in clean energy technologies across the globe.
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