Yara acquires Gulf Coast ammonia plant for US$1 bn

Norway’s ammonia company Yara International ASA says that its US subsidiary, Yara North America, Inc., has reached an agreement to acquire Gulf Coast Ammonia’s (GCA) ammonia production facility in Texas City, Texas from GCA Holdings LLC, affiliated with Lotus Infrastructure Partners and MB Energy for a consideration of US$1.3 billion.

Yara will own the ammonia plant with an expected nameplate capacity of 1.3 mtpa, with Air Products supplying the industrial gases to Yara as part of a long-term supply agreement. It will utilise its midstream ammonia platform to supply both external customers and its own internal sourcing needs.

The plant is currently in commissioning and is anticipated to continue ramping up toward full production and stable operations by end of 2026, with production targeted at above nameplate capacity.

Yara adds that it sees investing in the US as highly attractive, reinforcing its long-time presence as a reliable provider of crop nutrition solutions and producer of ammonia.

The acquisition includes the ammonia synthesis loop and related ammonia storage and exclusive use of loading infrastructure. Hydrogen and nitrogen supply, along with other utilities, are supplied through a long-term contract with Air Products, which owns and operates the largest hydrogen pipeline network in the US.

This contributes to Yara’s strategic priority of gas diversification, with a significant increase of US gas exposure (Henry Hub). The set-up is similar to Yara’s operations in Freeport, Texas, where a comparable model combined with Yara’s ammonia expertise has supported strong operational improvements and consistently high performance.

The plant will achieve a gradual ramp-up to its 1.3 million tonnes/year nameplate capacity and stable operations, currently anticipated by the end of 2026.

Yara and Air Products extend their collaboration through this acquisition, and through finalising the previously announced marketing and distribution agreement for renewable ammonia from the NEOM Green Hydrogen plant in Saudia Arabia. In addition, the set up in GCA presents opportunities for a flexible, step-wise entry to low-carbon ammonia, subject to regulatory development and financial viability.