BASF/Yara discontinue joint project for low-carbon ammonia on US Gulf Coast

German chemical firm BASF and Norway’s Yara International ASA have jointly decided to discontinue their project to develop a low-carbon ammonia production facility with carbon capture and storage in the US Gulf Coast region.

Announced in 2023, the project was set to produce between 1.2 and 1.4 million tonnes of low-carbon ammonia per year, with around 95% of the carbon dioxide generated during production captured and permanently stored.

This decision reflects the companies’ commitment to focus on initiatives with the highest potential to achieve their respective value creation goals. Yara will continue its ammonia strategy as previously communicated, evaluating and maturing equity investment opportunities in U.S. ammonia to determine the optimal project portfolio.

BASF and Yara are long-standing collaboration partners and continue to jointly operate a world-scale ammonia plant at BASF’s site in Freeport, Texas.

Additionally, BASF produces ammonia in Ludwigshafen, Germany, and Antwerp, Belgium.

Yara operates the world’s largest ammonia system with production facilities in Europe, the Americas and Asia.