Air Products & Yara Deepen Partnership on Scaled Low-Carbon Ammonia Manufacturing

Air Products and Chemicals Inc. (APD) and Yara International have progressed into substantive discussions regarding a transformative collaboration centered on large-scale, low-emission ammonia production. The agreement represents a strategic alignment between a leading industrial gas producer and a global fertilizer manufacturer seeking to decarbonize their supply chains.

Louisiana Clean Energy Complex: Scale and Scope

The centerpiece of this partnership is the Louisiana Clean Energy Complex, a $8–$9 billion infrastructure investment designed to manufacture sustainable hydrogen at unprecedented scale. The facility targets daily production exceeding 750 million standard cubic feet of low-carbon hydrogen while simultaneously capturing approximately 95% of CO2 emissions through integrated carbon management systems. These technical specifications reflect the ammonia formula optimization required for modern low-emission production—where hydrogen generation efficiency directly determines ammonia yield and environmental performance.

Under the proposed framework, Yara would assume ownership and operational control of the ammonia synthesis, storage, and export infrastructure upon the facility reaching contractually defined performance benchmarks. This asset transfer encompasses roughly 25% of the total project investment. The arrangement includes a 25-year hydrogen supply agreement covering approximately 80% of production output, enabling Yara to synthesize up to 2.8 million tons of low-carbon ammonia annually for distribution through its established global network. Air Products retains operational oversight of hydrogen generation assets and supplies the remaining hydrogen output to existing customers via its U.S. Gulf Coast pipeline infrastructure.

NEOM Saudi Arabia Project: Near Completion

Parallel to the Louisiana initiative, the NEOM Green Hydrogen Project in Saudi Arabia stands over 90% complete, with expected annual renewable ammonia capacity reaching 1.2 million tons. Air Products functions as the exclusive hydrogen offtaker for this facility, while Yara is exploring a supporting role in global commercialization and distribution logistics.

Timeline and Market Positioning

Final investment authorization for the Louisiana project is targeted for mid-2026, contingent upon environmental permitting approvals and definitive contract finalization. The Saudi Arabia distribution agreement timeline is similarly set for the first half of 2026. These milestones position the partnership as a pivotal development in scaling commercially viable low-carbon ammonia solutions for both fertilizer applications and emerging hydrogen-based energy markets.

Market Context

Air Products stock has declined 18.6% on a year-to-date basis, underperforming broader sector trends. The strategic expansion into renewable ammonia production represents management’s commitment to positioning the company within growing decarbonization demand across agricultural and industrial segments.