Air Products & Chemicals Partners with Yara for Low-Emission Ammonia Production Initiative

Air Products and Yara International Forge Strategic Partnership for Low-Emission Ammonia Production

Air Products & Chemicals Inc. and Yara International ASA announce a significant collaboration aimed at revolutionizing low-emission ammonia production. This partnership integrates Air Products' innovative low-emission ammonia projects in the United States and Saudi Arabia with Yara’s extensive distribution network. The companies are focused on the Louisiana Clean Energy Complex, projected to be the largest low-carbon energy facility globally. Expected to produce over 750 million standard cubic feet of low-carbon hydrogen daily, the facility aims to capture up to 95% of its associated CO2 emissions. Both companies anticipate finalizing investment decisions by mid-2026, contingent upon securing necessary air permits and construction contracts.

Yara will invest approximately 25% of the projected $8-9 billion project cost to acquire the ammonia production infrastructure, which it will manage and incorporate into its distribution systems. Under a long-term agreement, Air Products will supply Yara with 2.8 million tonnes of low-carbon ammonia annually while directing the remaining hydrogen to U.S. Gulf Coast customers through a 700-mile pipeline. This strategic move not only underscores the commitment of both companies to sustainability but also highlights their tactical approach to meeting the growing global demand for environmentally friendly ammonia solutions.

In addition to the Louisiana project, the NEOM Green Hydrogen Project in Saudi Arabia is over 90% complete and is expected to initiate commercial production by 2027. Air Products serves as the sole offtaker for up to 1.2 million tonnes of renewable ammonia per year from this project. A marketing agreement is also in the works, allowing Yara to sell any unsold ammonia as renewable hydrogen in Europe, thereby maximizing operational efficiencies for both entities. This partnership exemplifies the growing significance of low-emission technologies in the ammonia market, which is essential for agriculture and various industrial applications, positioning both companies as leaders in the transition towards sustainable energy.

The collaboration between Air Products and Yara reflects the increasing importance of public-private partnerships in tackling climate challenges and advancing clean energy solutions. By merging Air Products’ production capabilities with Yara’s global reach, the companies aim to develop a robust supply chain prioritizing low-emission practices, setting a precedent for future growth in an evolving market landscape. This initiative not only meets environmental concerns but also aligns with the broader push for sustainability in the chemical sector.