Air Products and Yara International ASA are in advanced negotiations to partner on low-emission ammonia projects that would connect Air Products' facilities in the United States and Saudi Arabia with Yara's global ammonia distribution network. The collaboration involves two major projects, with final investment decisions and agreements targeted for 2026.

Louisiana Clean Energy Complex Partnership

Air Products is developing what it describes as the world's largest low-carbon energy complex in Louisiana. The facility is designed to produce more than 750 million standard cubic feet per day of low-carbon hydrogen while capturing 95 percent of the carbon dioxide generated during normal operation.

Under the proposed partnership structure, Air Products would serve as the project developer, and once the ammonia plant achieves the agreed-upon performance levels, Yara would acquire the ammonia production, storage, and shipping facilities for approximately 25 percent of the total project cost, estimated at USD 8-9 billion. Yara would then 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, with approximately 80 percent of the low-carbon hydrogen supplied to Yara under a 25-year long-term offtake agreement to produce 2.8 million tonnes of low-carbon ammonia per year. The remaining hydrogen would be supplied to Air Products' customers in the U.S. Gulf Coast via Air Products' 700-mile hydrogen pipeline system.

The facility would generate about 5 million tonnes of high-purity carbon dioxide per year, which a third party would sequester under a long-term agreement to be announced later. Final investment decisions by both companies are targeted for mid-2026, subject to the issuance of air permits and the finalization of construction contracts. Project completion is expected by 2030.

NEOM Green Hydrogen Project Distribution Agreement

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 million tonnes of renewable ammonia per year from this facility.

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. This arrangement is designed to maximize value for both companies and enable ammonia from what is described as the world's first large-scale renewable ammonia plant to be delivered worldwide through Yara's shipping fleet.

The marketing and distribution agreement for the NEOM project is targeted for completion during the first half of 2026.

Strategic Rationale and Company Capabilities

Yara is positioned as the world's largest trader and shipper of ammonia, currently transporting over four million metric tonnes annually. This operation is supported by Yara's fleet of 12 ammonia vessels and 18 import terminals, as well as the company's significant internal ammonia demand.

Air Products brings its position as the world's largest supplier of hydrogen and expertise in low-emission hydrogen and ammonia production at scale. The collaboration is intended to enable both companies to meet the growing demand for low-emission ammonia in the coming years, particularly in Europe, for Yara's internal consumption and other customers.

Air Products CEO Eduardo Menezes stated the company is “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.”

Yara CEO Svein Tore Holsether described Air Products' two projects as “a strong strategic fit with Yara's flexible nitrogen system – enabling energy diversification and profitable decarbonization while aligning with our disciplined capital allocation policy.” He noted that “the Louisiana project builds on a proven, capital-efficient model; producing ammonia from externally sourced hydrogen and delivering strong returns.”

Company Background Information

Yara International ASA operates with a mission to responsibly feed the world and protect the planet, pursuing a strategy of sustainable value growth through reducing emissions from crop nutrition production and developing low-emission energy solutions.

Air Products is a world-leading industrial gases company focused on serving energy, environmental, and emerging markets. The company supplies essential industrial gases, related equipment and applications expertise to customers across dozens of industries, including refining, chemicals, metals, electronics, manufacturing, medical and food sectors.

As the leading global supplier of hydrogen, Air Products develops, engineers, builds, owns and operates some of the world's largest clean hydrogen projects, supporting the transition to low- and zero-carbon energy in industrial and heavy-duty transportation sectors.

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