Air Products and Yara International have finalized a commercial agreement for the marketing and distribution of renewable ammonia produced at the NEOM Green Hydrogen Project in Saudi Arabia. The agreement marks a major milestone for one of the world's largest green ammonia projects and strengthens the commercialization strategy for renewable fuels in global energy markets.
Under the agreement, Yara will market the portion of renewable ammonia from the NEOM facility that Air Products does not convert back into hydrogen. The arrangement follows discussions announced by both companies in December 2025 regarding a long-term marketing and distribution partnership. Air Products confirmed the agreement while releasing its second-quarter fiscal 2026 financial results.
Air Products remains the exclusive offtaker of the NEOM project's planned annual production capacity of 1.2 million metric tons of renewable ammonia under a 30-year contract. The company intends to crack a significant share of the ammonia into hydrogen for customers in Europe, including supplies committed under its agreement with TotalEnergies. However, the new partnership enables part of the production to be sold directly as renewable ammonia through Yara's established global distribution network instead of being converted into hydrogen.
According to Air Products CEO Eduardo Menezes, the renewable ammonia volumes will move through Yara's existing international supply chain, while Yara will receive commission-based compensation for managing sales and distribution. The arrangement allows Air Products to reach broader markets while utilizing Yara's extensive logistics and customer network.
The agreement also reduces Air Products' need to invest heavily in downstream green hydrogen infrastructure. By selling part of the ammonia directly, the company may lower its future requirement for ammonia cracking facilities in Europe. Air Products has previously proposed several ammonia cracking plants across northwest Europe but has not yet approved final investments for any of those projects.
The partnership is expected to support the commercialization of initial production volumes from NEOM before dedicated ammonia cracking facilities become operational. Project developers indicated in March that the NEOM facility could produce its first renewable ammonia in 2027. Nevertheless, Air Products expects commissioning to be gradual and believes the plant will require time before reaching full production capacity.
The company also stated that it does not anticipate any financial gain or loss from the NEOM project during 2027. Separately, Air Products recently discontinued development of its Louisiana Clean Energy Complex, a project designed to produce approximately 600,000 metric tons of hydrogen annually using natural gas with carbon capture and storage. Equipment originally purchased for that project may be redeployed to other facilities or sold, while the ammonia production loop may be commercialized as a standalone system.
Product Impact
The agreement is expected to strengthen the global availability of renewable ammonia by leveraging Yara's established distribution network. Direct ammonia sales will improve market accessibility, reduce reliance on hydrogen conversion infrastructure, and accelerate adoption of low-carbon ammonia across fertilizer, shipping, and industrial sectors. The partnership also enhances supply flexibility and supports faster commercialization of early NEOM production, potentially increasing customer confidence in renewable ammonia as a practical energy carrier.
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