Air Products and Yara International have entered into a strategic partnership to develop two flagship low‑emission ammonia projects—one in Louisiana, United States, and the other in Saudi Arabia’s NEOM region—combining Air Products’ hydrogen production and carbon‑capture expertise with Yara’s global ammonia distribution network.
The Louisiana Clean Energy Complex will produce more than 750 million standard cubic feet per day of low‑carbon hydrogen, capturing 95 percent of the CO₂ it generates. Yara will invest roughly 25 percent of the project’s $8‑$9 billion cost, or about $2‑$2.25 billion, and will secure an 80‑percent offtake of the hydrogen under a 25‑year agreement that will enable the production of 2.8 million tonnes of low‑carbon ammonia annually. Final investment decisions are targeted for mid‑2026, with full project completion expected by 2030.
The NEOM Green Hydrogen Project in Saudi Arabia is already over 90 percent complete. Air Products will be the sole offtaker of up to 1.2 million tonnes per year of renewable ammonia, while Yara will market and distribute any surplus in Europe on a commission basis. The marketing and distribution agreement is slated for completion in the first half of 2026, and commercial production is scheduled to begin in 2027.
The partnership leverages complementary strengths: Air Products’ ability to produce low‑carbon hydrogen at scale and capture CO₂, and Yara’s fleet of 12 vessels and 18 import terminals that move more than four million metric tonnes of ammonia each year. Together, the alliance positions the companies to accelerate the deployment of renewable ammonia as a decarbonized energy carrier, support global shipping and fertilizer markets, and meet the growing demand for low‑emission fuels. The deal also aligns with Yara’s disciplined capital‑allocation policy, which has earmarked roughly $1.2 billion per year for U.S. projects through 2030.
Yara CEO Svein Tore Holsether said the collaboration “is a strong strategic fit with Yara’s flexible nitrogen system, enabling energy diversification and profitable decarbonization while aligning with our disciplined capital‑allocation policy.” He added that the Louisiana project “builds on a proven, capital‑efficient model, producing ammonia from externally sourced hydrogen and delivering strong returns.”
Air Products reported fourth‑quarter FY2025 earnings of $3.39 EPS on $3.17 billion in revenue, slightly above analyst expectations, underscoring the company’s ability to fund large‑scale projects while maintaining profitability. Yara’s extensive shipping fleet and global distribution network further reinforce the partnership’s potential to capture a growing share of the renewable ammonia market.
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