Air Products and Yara advance negotiations for ammonia projects

Air Products is developing the Louisiana Clean Energy Complex, the largest low-carbon energy complex in the state of Louisiana, US. The complex is designed to produce >750 million ft³/d 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 US$8 - 9 billion). 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-year long-term offtake agreement to produce 2.8 million tpy of low-carbon ammonia. The remaining hydrogen would be supplied to Air Products' customers in the US Gulf Coast via Air Products' 700 mile hydrogen pipeline system. About 5 million tpy 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.

Final investment decisions (FID) by both companies are targeted by mid-2026, and project completion is expected by 2030.

The NEOM Green Hydrogen Project in Saudi Arabia is more than 90% complete and is expected to start commercial production in 2027. Air Products is the sole offtaker of up to 1.2 million tpy of renewable ammonia.

Air Products and Yara anticipate entering into a marketing and distribution agreement where Yara would commercialise, on a commission basis, the ammonia not sold by Air Products as renewable hydrogen in Europe. The model maximises 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 1H26.

Leveraging complementary strengths to drive value creation in low-emission ammonia

Yara is one of the world's largest traders and shippers of ammonia, currently transporting over 4 million tpy, 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 one of the world's largest suppliers 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 maximise value from our projects in Louisiana and Saudi Arabia," said Air Products' CEO Eduardo Menezes.

"Air Products' two advanced projects are a strong strategic fit with Yara's flexible nitrogen system – enabling energy diversification and profitable decarbonisation 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," added Yara's CEO Svein Tore Holsether.

Read the article online at: https://www.worldfertilizer.com/project-news/08122025/air-products-and-yara-advance-negotiations-for-ammonia-projects/