Air Products & Yara partner to advance low-emissions ammonia
By on December 15, 2025
Combining production in the USA and Saudi Arabia with a global distribution network
Click to learn more about Air Products’ and Yara’s new partnership.
The pair are in advanced negotiations to cement a partnership that will combine “Air Products’ industrial gas capabilities and low-emission hydrogen with Yara’s [global] ammonia production and distribution network”. The partnership focuses on advancing two key low-emissions production projects: one due to reach FID mid-2026 (the Louisiana Clean Energy Complex), and the other due to start commercial operations in 2027 (NEOM).
In Louisiana, once Air Products’ project 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 $8-9 billion). Yara would assume responsibility for related operations and integrate the entire ammonia output into its global distribution network.
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 U.S. Gulf Coast via Air Products’ 700-mile hydrogen pipeline system. About five million tonnes per year of high purity CO2 captured by the Air Products facility would be sequestered by a third party under a long-term agreement to be announced later.
Details of how the partners will progress the Louisiana Clean Energy Complex, from Yara’s official press release, 8 Dec 2025
Project completion in Louisiana is expected by 2030.
Meanwhile, in Saudi Arabia, Air Products will continue to act as the sole offtaker of up to 1.2 million tonnes per year of renewable ammonia from NEOM Green Hydrogen, which will be operational next year. To further reduce risk:
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 Air Products as renewable hydrogen in Europe. The model maximizes value for both companies and enables ammonia from the world’s first large-scale renewable ammonia plant to be delivered worldwide by Yara’s unparalleled shipping fleet. The marketing and distribution agreement is targeted to be completed during the first half of 2026.
Details of how the partners will further de-risk the NEOM project, from Yara’s official press release, 8 Dec 2025
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.
Air Products’ Chief Executive Officer Eduardo Menezes in Yara’s official press release, 8 Dec 2025
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.
Yara’s CEO Svein Tore Holsether in his organisation’s official press release, 8 Dec 2025