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

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

Air Products & Chemicals Inc. and Yara International ASA are embarking on a significant collaboration aimed at revolutionizing the low-emission ammonia production landscape. This partnership leverages Air Products' cutting-edge low-emission ammonia projects in Louisiana and Saudi Arabia, which are poised to integrate seamlessly with Yara's extensive global distribution network. By focusing on sustainable ammonia production, the collaboration not only addresses environmental concerns but also strategically positions both companies to meet the increasing global demand for ammonia in agricultural and industrial applications.

Under this initiative, the Louisiana Clean Energy Complex is set to become the largest low-carbon energy complex in the world, with plans to produce over 750 million standard cubic feet of low-carbon hydrogen daily while capturing an impressive 95% of CO2 emissions. Yara aims to invest approximately 25% of the projected $8-9 billion project cost to acquire the ammonia production infrastructure, thus managing operations and enabling the efficient distribution of low-carbon ammonia. This partnership is expected to culminate in a 25-year offtake agreement, whereby Air Products will supply Yara with 2.8 million tonnes of low-carbon ammonia annually. Additionally, hydrogen produced at the facility will be transported to U.S. Gulf Coast customers through a robust 700-mile pipeline.

The NEOM Green Hydrogen Project in Saudi Arabia further complements this collaboration, with commercial production anticipated to begin in 2027. Air Products stands as the sole offtaker for up to 1.2 million tonnes of renewable ammonia per year from this facility. This strategic alignment allows Yara to market any unsold ammonia in Europe as renewable hydrogen, enhancing profitability for both companies and facilitating the transition to greener energy alternatives. Overall, this partnership signifies a critical step towards achieving a sustainable ammonia supply chain, with an eye on completing both projects by 2030.

In addition to this groundbreaking collaboration, Air Products and Yara International's partnership reflects a broader shift within the chemical sector towards embracing low-emission technologies. The strategic vision shared by both companies demonstrates their commitment to sustainability, addressing climate challenges, and fostering innovation in clean energy solutions. This collaborative effort not only enhances operational efficiencies but also showcases the potential of public-private partnerships in driving progress in the ammonia market.

As the global demand for ammonia continues to rise, Air Products and Yara's alignment presents a promising pathway for sustainable growth in the industry. This partnership not only reinforces their leadership positions within their respective sectors but also underscores the importance of collaborative efforts in advancing the transition to a low-carbon economy.