Air Products and Yara to partner on low-emission ammonia projects
- Plans connect Air Products’ low-emissions ammonia projects in the U.S. and Saudi Arabia with Yara’s world-scale ammonia network.
- Final investment decisions (FIDs) by both companies for the U.S. project (Louisiana Clean Energy Complex) are targeted by mid-2026, subject to, among other things, air permit issuance and finalization of construction contracts
- Final marketing and distribution agreement for renewable ammonia from the Saudi Arabian project (NEOM Green Hydrogen Project) is targeted for the first half of 2026.
World-leading hydrogen supplier and global industrial gases company Air Products and world-leading crop nutrition and ammonia company Yara International ASA are working to combine Air Products’ industrial gas capabilities and low-emission hydrogen with Yara’s ammonia production and distribution network:
Louisiana Clean Energy Complex: Air Products is developing the world’s largest low-carbon energy complex in the state of Louisiana (U.S.). The complex is designed to produce >750 MMsft3d of low-carbon hydrogen, capturing 95% of the carbon dioxide (CO2) generated during normal operation.
Air Products is the project developer and once the ammonia plant has achieved agreed upon performance levels, Yara would acquire the ammonia production, storage and shipping facilities for approximately 25% of the total project cost (estimated between $8 B and $9 B). Yara would assume responsibility for related operations and integrate the entire ammonia output into its global distribution network.
Air Products would own and operate the industrial gases production, where approximately 80% of the low-carbon hydrogen would be supplied to Yara under a 25-yr long-term offtake agreement to produce 2.8 metric MMtpy of low-carbon ammonia. The remaining hydrogen would be supplied to Air Products’ customers in the U.S. Gulf Coast via Air Products’ 700-mi hydrogen pipeline system. About 5 metric MMtpy of high-purity CO2 captured by the Air Products facility would be sequestered by a third party under a long-term agreement to be announced later.
FIDs by both companies are targeted by mid-2026, and project completion is expected by 2030.
NEOM Green Hydrogen Project: The NEOM Green Hydrogen Project in Saudi Arabia is more than 90% percent complete and is expected to start commercial production in 2027. Air Products is the sole offtaker of up to 1.2 metric MMtpy of renewable ammonia.
Air Products and Yara anticipate entering into a marketing and distribution agreement where Yara would commercialize, on a commission basis, the ammonia not sold by Air Products as renewable hydrogen in Europe. The model maximizes value for both companies and enables ammonia from the world’s first large-scale renewable ammonia plant to be delivered worldwide by Yara’s unparalleled shipping fleet. The marketing and distribution agreement is targeted to be completed during the first half of 2026.
Leveraging complementary strengths to drive value creation in low-emission ammonia. Yara is the world’s largest trader and shipper of ammonia, currently transporting > 4 metric MMtpy, which is supported by Yara’s 12 ammonia vessels and 18 import terminals. In addition, Yara has a significant internal ammonia demand. Air Products is the world’s largest supplier of hydrogen and brings leading low-emission hydrogen and ammonia production at scale. The collaboration would enable the companies to meet the increasing demand for low-emission ammonia in the coming years, particularly in Europe both for Yara's internal consumption and other customers.
“We are pleased to be working with Yara, the world’s leading fertilizer company, as we advance the global low-emission ammonia market and maximize value from our projects in Louisiana and Saudi Arabia,” said Air Products’ Chief Executive Officer Eduardo Menezes.
“Air Products’ two advanced projects are a strong strategic fit with Yara’s flexible nitrogen system – enabling energy diversification and profitable decarbonization while aligning with our disciplined capital allocation policy. The Louisiana project builds on a proven, capital-efficient model; producing ammonia from externally sourced hydrogen and delivering strong returns,” said Yara’s CEO Svein Tore Holsether.
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