Air Products/Yara to partner on low-emission ammonia projects

Hydrogen supplier/industrial gases company Air Products 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. The complex is designed to produce >750 million standard cu ft/day of low-carbon hydrogen, capturing 95% of 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 tonnes/year of low-carbon ammonia. The remaining hydrogen would be supplied to Air Products’ customers in the U.S. Gulf Coast via Air Products’ 700-mile hydrogen pipeline system.

About 5 million tonnes/year 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 by both companies are targeted by mid-2026, and project completion is expected by 2030.

Neom Green Hydrogen Project: The 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 tonnes/year 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 shipping fleet. The marketing and distribution agreement is targeted to be completed during the first half of 2026.

Yara is the world’s largest trader and shipper of ammonia, currently transporting over 4 million tonnes/year, 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.