Wedoany.com Report-Dec.9, Air Products and Yara International ASA have agreed to combine their respective strengths in industrial gases and clean ammonia production through two major low-emission projects.

Louisiana Clean Energy Complex

Air Products is developing a world-scale low-carbon hydrogen facility in Louisiana capable of producing more than 750 million standard cubic feet per day of hydrogen while capturing over 95% of process CO₂. Once the integrated ammonia plant reaches agreed performance targets, Yara will acquire the ammonia production, storage and shipping assets for approximately 25% of the project’s estimated US$8–9 billion total cost.

Under a 25-year offtake agreement, Air Products will supply around 80% of the low-carbon hydrogen to Yara, enabling annual production of 2.8 million tonnes of low-carbon ammonia. The remaining hydrogen will serve Air Products’ Gulf Coast customers through its existing 700-mile pipeline network. Approximately five million tonnes per year of captured high-purity CO₂ will be permanently sequestered by a third party. Final investment decisions are targeted for mid-2026, with operations expected to start in 2030.

NEOM Green Hydrogen Project

The NEOM Green Hydrogen facility in Saudi Arabia, now more than 90% complete, is on track for commercial start-up in 2027. Air Products, as sole offtaker, will receive up to 1.2 million tonnes per year of renewable ammonia. The companies plan to sign a marketing and distribution agreement in the first half of 2026 under which Yara will commercialise, on a commission basis, any volumes not sold directly by Air Products as renewable hydrogen in Europe.

Air Products’ Chief Executive Officer Eduardo Menezes stated: “We are pleased to be working with Yara, the world’s leading fertilizer company, as we advance the global low-emission ammonia market and maximize value from our projects in Louisiana and Saudi Arabia.”

Yara’s CEO Svein Tore Holsether commented: “Air Products’ two advanced projects are a strong strategic fit with Yara’s flexible nitrogen system – enabling energy diversification and profitable decarbonization while aligning with our disciplined capital allocation policy. The Louisiana project builds on a proven, capital-efficient model; producing ammonia from externally sourced hydrogen and delivering strong returns.”

The partnership leverages Air Products’ leadership in large-scale hydrogen supply and Yara’s position as the world’s largest ammonia trader and shipper, with a fleet of 12 vessels and 18 import terminals. Together, the initiatives will significantly expand availability of low-carbon and renewable ammonia to support agriculture, shipping and industrial decarbonisation, particularly in Europe and North America.