Air Products, Yara Strengthen Global Hydrogen-Ammonia Partnership With Louisiana And NEOM Projects

(RTTNews) - Air Products (APD), a hydrogen supplier and industrial gases company, and Yara International ASA (YARIY, YAR.OL) are collaborating to combine Air Products' low-emission hydrogen capabilities with Yara's ammonia production and distribution network.

Louisiana Clean Energy Complex Air Products is developing the world's largest low-carbon energy complex in Louisiana, designed to produce more than 750 million standard cubic feet per day of low-carbon hydrogen while capturing 95% of the CO2 generated during operations.

As project developer, Air Products will own and operate the industrial gases facilities. Once the ammonia plant achieves agreed performance levels, Yara will acquire the ammonia production, storage, and shipping assets for about 25% of the total project cost (estimated at $8-9 billion). Yara will then manage operations and integrate the ammonia output into its global distribution network.

Under a 25-year offtake agreement, approximately 80% of the hydrogen will be supplied to Yara to produce 2.8 million tonnes of low-carbon ammonia annually. The remainder will serve Air Products' U.S. Gulf Coast customers via its 700-mile hydrogen pipeline. Around five million tonnes of captured CO2 per year will be sequestered under a separate long-term agreement. Final investment decisions are targeted by mid-2026, with project completion expected in 2030.

NEOM Green Hydrogen Project In Saudi Arabia, the NEOM Green Hydrogen Project is over 90% complete and expected to begin commercial production in 2027. Air Products will be the sole offtaker of up to 1.2 million tonnes of renewable ammonia annually.

Air Products and Yara plan to finalize a marketing and distribution agreement in the first half of 2026, under which Yara will commercialize, on a commission basis, ammonia not sold by Air Products as renewable hydrogen in Europe. This partnership will maximize value for both companies and leverage Yara's global shipping fleet to deliver renewable ammonia worldwide.