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Air Products and Yara's Low-Emission Ammonia Collaboration

In a significant step towards sustainable energy solutions, Air Products, a global leader in industrial gases, is in advanced negotiations with Yara International, a premier ammonia company, to collaborate on groundbreaking low-emission ammonia initiatives. This partnership aims to connect Air Products' ambitious low-emission ammonia projects located in the United States and Saudi Arabia with Yara's vast ammonia distribution network, thereby reinforcing efforts to reduce carbon emissions in the industrial sector.

Strategic Projects Overview

At the heart of this collaboration lies the Louisiana Clean Energy Complex. Air Products envisions this facility as the world's largest low-carbon energy complex, with a design capacity to produce over 750 million standard cubic feet of low-carbon hydrogen daily. A remarkable feature of the complex is its technology, which captures a staggering 95 percent of carbon dioxide emissions generated during its operation. Within this ecosystem, Yara will acquire substantial production and operational responsibilities. Upon achieving agreed performance levels, Yara will handle the ammonia production, storage, and shipment facilities, covering approximately 25 percent of the project's $8-9 billion cost.

Air Products will maintain ownership and operational control over the hydrogen production. Interestingly, about 80% of the hydrogen generated will be dedicated to Yara for converting into approximately 2.8 million tonnes of low-carbon ammonia every year, under a long-term, 25-year offtake agreement. The remaining hydrogen will cater primarily to customers in the U.S. Gulf Coast, facilitated via a 700-mile-long hydrogen pipeline built by Air Products. Additionally, approximately five million tonnes of high-purity CO2 captured from this facility will be sequestered by a third-party entity, with details to follow in a long-term agreement.

NEOM Green Hydrogen Project Insights

Turning to the international stage, the NEOM Green Hydrogen Project in Saudi Arabia, where Air Products is the sole buyer of up to 1.2 million tonnes of renewable ammonia annually, is progressing rapidly, with over 90 percent of the construction completed. The project is anticipated to enter commercial production by 2027. In line with their collaboration, Air Products and Yara plan to finalise a marketing and distribution agreement, wherein Yara will promote ammonia not converted into renewable hydrogen for European markets, capitalising on its extensive shipping fleet and robust distribution capabilities.

Mutual Benefits and Market Expansion

Both companies are well-positioned to exploit the increasing demand for low-emission ammonia, notably in the European markets. Yara, as the largest ammonia trader and shipper globally, already employs 12 ammonia vessels and manages 18 import terminals, emphasizing its capability to handle substantial volumes of ammonia logistics. This partnership not only reinforces Yara's internal consumption but also broadens market access for customers desiring low-emission solutions, leveraging Air Products' status as an industry-leading hydrogen provider.

Air Products' CEO, Eduardo Menezes, expressed satisfaction in aligning with Yara, stating the collaboration significantly advances the low-emission ammonia market. Yara's CEO, Svein Tore Holsether, echoed this sentiment, highlighting how the partnership allows for energy diversification, productive decarbonization, and adherence to their capital allocation policies. The Louisiana initiative exemplifies a sustainable model that produces ammonia through externally sourced hydrogen, delivering remarkable financial returns while prioritising ecological accountability.

Yara and Air Products: Leaders in Sustainability

Yara has long championed its mission to responsibly nourish the world while safeguarding the planet, emphasizing sustainable practices in crop nutrition production and energy solutions. As a company founded in 1905 to combat famine in Europe, it has evolved to become the only global crop nutrition entity with a commitment to sustainability at its core. Yara's integration of digital tools for precise farming and collaboration with various food value chain partners demonstrates a strategic approach toward sustainable agricultural practices.

On the other hand, Air Products, with over 80 years of operational experience, continues to provide essential industrial gases while focusing on clean hydrogen projects that facilitate the transition to low-carbon energy territories. With last year's fiscal sales reaching $12 billion from 50 operational countries, Air Products remains a stronghold in promoting industrial advancements and sustainability.

As both companies finalize their investment decisions projected for mid-2026 and aim for project completions by 2030, their collaboration signals a promising future for low-emission ammonia production and distribution, paving the way for sustainable practices across energy and agriculture sectors.