#USA #Air Products #Louisiana #Yara International #low-emission ammonia

Collaboration for a Sustainable Future in Low-Emission Ammonia

In a significant move towards sustainable energy, Air Products, a world-leading industrial gases provider, is negotiating a partnership with Yara International ASA, a key player in crop nutrition and ammonia production. This collaboration aims to synergize Air Products' innovative low-emission ammonia projects in both the United States and Saudi Arabia with Yara's expansive ammonia distribution network. The two companies expect to finalize their investment decisions for the U.S. initiative, known as the Louisiana Clean Energy Complex, by mid-2026, while completion of the project is anticipated by 2030.

The Louisiana Clean Energy Complex

Located in Louisiana, the Clean Energy Complex represents the largest low-carbon energy facility in the world, designed to produce more than 750 million standard cubic feet of low-carbon hydrogen daily. During its operation, the facility is set to capture around 95% of the CO2 emissions generated. Air Products will be the primary developer, and upon meeting specific performance criteria, Yara will acquire the production, storage, and shipping facilities for roughly 25% of the total project cost, estimated between $8 and $9 billion. The partnership assures that a significant supply of low-carbon hydrogen will be devoted to creating 2.8 million tonnes of low-carbon ammonia annually, primarily for Yara. Air Products also plans to distribute remaining hydrogen to its customer network via a vast 700-mile pipeline system.

The NEOM Green Hydrogen Project

On the other side of the globe, the NEOM Green Hydrogen Project in Saudi Arabia is about 90% complete and set to kick off commercial production by 2027. Air Products has secured an agreement to purchase up to 1.2 million tonnes of renewable ammonia from this initiative.

As part of the collaboration, a viable marketing and distribution agreement is expected to be concluded by the first half of 2026, allowing Yara to handle the ammonia that is not marketed by Air Products for renewable hydrogen in Europe. This strategic framework ensures optimal value generation for both parties, facilitating Yara's formidable shipping fleet to distribute ammonia globally.

Mutual Benefits and Growth Opportunities

Capitalizing on their respective strengths will allow both companies to address the burgeoning demand for low-emission ammonia, particularly within Europe. Yara's proficiency in efficiently trading and transporting over four million metric tonnes of ammonia annually through its extensive fleet and terminals complements Air Products' expertise in hydrogen production capabilities.

Air Products' CEO, Eduardo Menezes, expressed enthusiasm about working alongside Yara, citing this collaboration as pivotal for advancing the global low-emission ammonia market and enhancing the duo's projects' success in both regions. Yara's CEO, Svein Tore Holsether, echoed similar sentiments, emphasizing how their project models align for profitable decarbonization while adhering to efficient capital utilization.