Air Products and Yara advance major partnerships to produce and globally distribute large-scale low-emission ammonia, supporting decarbonization and clean energy demand.
Air Products, a leading global Hydrogen producer and industrial gases company, and Yara International, a major player in Crop Nutrition and Ammonia production, are progressing toward a strategic collaboration focused on large-scale, low-emission ammonia initiatives. The partnership aims to merge Air Products’ expertise in low-carbon hydrogen generation with Yara’s extensive ammonia manufacturing and distribution system to accelerate the supply of cleaner ammonia to global markets.
A major part of this collaboration is centered on the Louisiana Clean Energy Complex, which Air Products is currently developing as the world’s largest low-carbon energy project. Located in Louisiana, the facility is being designed to deliver more than 750 million standard cubic feet per day of low-carbon hydrogen. This will be achieved by capturing approximately 95% of the carbon dioxide generated during routine operations, ensuring significantly reduced emissions compared to conventional hydrogen production.
As part of the proposed structure, Air Products will lead the project development. Once the ammonia plant achieves predetermined performance targets, Yara is expected to Acquire the ammonia production, storage, and shipping infrastructure for roughly 25% of the project’s total cost, estimated at $8–9 billion. After acquisition, Yara would oversee operational responsibilities and integrate the full ammonia output into its global logistics network.
Under the envisioned arrangement, Air Products would retain ownership and operational control of the industrial gases segment. Roughly 80% of the low-carbon hydrogen produced would be supplied to Yara under a long-term 25-year offtake agreement. This hydrogen supply would allow Yara to produce approximately 2.8 million tonnes of low-carbon ammonia annually. The remaining hydrogen output would serve Air Products’ existing customers along the U.S. Gulf Coast through its 700-mile hydrogen pipeline system. Additionally, nearly five million tonnes of high-purity captured CO2 per year will be permanently sequestered by a third-party partner under a long-term arrangement yet to be announced. Both companies aim to finalize investment decisions by mid-2026, with full project completion anticipated by 2030.
The collaboration also includes alignment on the NEOM Green Hydrogen Project in Saudi Arabia, which is more than 90% complete and scheduled to begin commercial output in 2027. Air Products is positioned as the exclusive offtaker of up to 1.2 million tonnes per year of renewable ammonia from this groundbreaking renewable-energy-driven facility. Air Products and Yara are in discussions to finalize a marketing and distribution agreement under which Yara would sell, on a commission basis, the ammonia not utilized by Air Products as renewable hydrogen in Europe. This model enables global distribution of ammonia from the world’s first large-scale renewable ammonia project, leveraging Yara’s extensive shipping capabilities. The agreement is expected to be completed in the first half of 2026.
Together, the companies aim to capitalize on their complementary strengths: Yara’s position as the world’s largest ammonia trader and transporter—with a fleet of 12 vessels and 18 import terminals—and Air Products’ leadership in hydrogen supply and low-emission hydrogen and ammonia production. Executives from both companies emphasized that this cooperation is poised to meet the growing demand for low-carbon ammonia in Europe and beyond, while supporting both energy transition and Decarbonization goals.
