Yara/Air Products to exit Louisiana ammonia project

Yara International has announced it will not proceed with the acquisition of the ammonia assets in the Louisiana Clean Energy Complex (LCEC) from Air Products. Yara will reallocate capital to alternative mature US ammonia investment opportunities with more competitive returns.

Meanwhile, Air Products has also terminated its LCEC project and said it ​would record up to US$2.9 billion in pre-tax charges in the ‌third quarter.

The industrial gases maker said a detailed review showed that the expected financial returns from the project would not meet its criteria.

Air Products was developing ​what it described as the world’s largest low-carbon energy complex in ​Louisiana with plans to produce blue ammonia for international buyers.

The ​exits were driven by challenging commercial conditions, project-specific economic factors, and slower-than-expected ​development in certain markets, largely hydrogen for mobility, the company said.

In December 2025, Air Products and Yara jointly announced the potential for Yara to acquire the LCEC’s ammonia production and distribution assets from Air Products, and for Air Products to own and operate the industrial gases production.

The announcement to not move forward reflects that the project’s expected financial returns do not meet Yara’s investment criteria.

Yara confirms it is finalising a marketing and distribution agreement with Air Products for renewable ammonia from the NEOM Green Hydrogen project in Saudi Arabia.

Yara says it will continue its strategy to strengthen its position on the ammonia cost curve and is actively advancing selected U.S. ammonia investment opportunities that are expected to deliver attractive and robust returns. Alternative opportunities are at an advanced stage of evaluation.

The company also reiterates its previously communicated capital allocation priorities, with the majority of growth capex for the period of 2026-2030 expected to be deployed into large-scale US ammonia investment, demonstrating its commitment to deliver on its strategic priorities while maintaining the dividend policy and strict capital discipline with the overall objective to maximise long-term shareholder returns.