Air Products and Yara in Advanced Negotiations to Partner on Low-emission Ammonia Projects
Plans connect Air Products' low-emission ammonia projects in the
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Final Investment Decisions by both companies for the
U.S. project (Louisiana Clean Energy Complex ) are targeted by mid-2026, subject to, among other things, air permit issuance and finalization of construction contracts; and -
Final marketing and distribution agreement for renewable ammonia from the Saudi Arabian project (
NEOM Green Hydrogen Project ) is targeted for the first half of 2026.
Air Products is the project developer and once the ammonia plant has achieved agreed upon performance levels, Yara would acquire the ammonia production, storage and shipping facilities for approximately 25 percent of the total project cost (estimated between
Air Products would own and operate the industrial gases production, where approximately 80% of the low-carbon hydrogen would be supplied to Yara under a 25-year long-term offtake agreement to produce 2.8 million tonnes of low-carbon ammonia per year. The remaining hydrogen would be supplied to Air Products' customers in the
Final investment decisions by both companies are targeted by mid-2026, and project completion is expected by 2030.
Air Products and Yara anticipate entering into a marketing and distribution agreement where Yara would commercialize, on a commission basis, the ammonia not sold by
Leveraging complementary strengths to drive value creation in low-emission ammonia
Yara is the world's largest trader and shipper of ammonia, currently transporting over four million metric tonnes annually, which is supported by Yara's 12 ammonia vessels and 18 import terminals. In addition, Yara has a significant internal ammonia demand. Air Products is the world's largest supplier of hydrogen and brings leading low-emission hydrogen and ammonia production at scale. The collaboration would enable the companies to meet the increasing demand for low-emission ammonia in the coming years, particularly in Europe both for Yara's internal consumption and other customers.
"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
"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
About Yara International ASA
Yara's mission is to responsibly feed the world and protect the planet. We pursue a strategy of sustainable value growth through reducing emissions from crop nutrition production and developing low-emission energy solutions. Yara's ambition is focused on growing a nature-positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.
To drive the green shift in fertilizer production, shipping, and other energy intensive industries, Yara will produce ammonia with significantly lower emissions. We provide digital tools for precision farming and work closely with partners at all levels of the food value chain to share knowledge and promote more efficient and sustainable solutions.
Founded in 1905 to solve the emerging famine in
About Air Products
Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets and generating a cleaner future. The Company supplies essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, medical and food. As the leading global supplier of hydrogen, Air Products also develops, engineers, builds, owns and operates some of the world's largest clean hydrogen projects, supporting the transition to low- and zero-carbon energy in the industrial and heavy-duty transportation sectors. Through its sale of equipment businesses, the Company also provides turbomachinery, membrane systems and cryogenic containers globally.
Air Products had fiscal 2025 sales of
This release contains "forward-looking statements" within the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995, including statements about the arrangements that are the subject
of this release and their expected impact and timing, and about the Company's business outlook and investment opportunities. These forward-looking statements are based on management's expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended
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SOURCE Air Products
