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Nitrogen+Syngas 399 Jan-Feb 2026

27 January 2026

Yara and Air Products partnering on low carbon ammonia

Yara and Air Products partnering on low carbon ammonia

Air Products and Yara International ASA say that they are working to combine Air Products’ industrial gas capabilities and low-emission hydrogen production with Yara’s ammonia production and distribution network, with several major projects under development.

At the Louisiana Clean Energy Complex, Air Products is developing the world’s largest low-carbon energy complex, designed to produce >750 million scf/d day of low-carbon hydrogen, capturing 95% of the carbon dioxide generated during normal operation. Once the ammonia plant has achieved agreed upon performance levels, Yara would then acquire the ammonia production, storage and shipping facilities for approximately 25% 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 5 million t/a 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. Final investment decisions by both companies are targeted by mid-2026, and project completion is expected by 2030.

Meanwhile, at the NEOM Green Hydrogen Project in Saudi Arabia, currently more than 90% complete and expected to start commercial production in 2027, Air Products is the sole offtaker of up to 1.2 million tonnes per year of renewable ammonia. Air Products and Yara anticipate entering into a marketing and distribution agreement where Yara would commercialise, on a commission basis, the ammonia not sold by Air Products as renewable hydrogen in Europe. The model maximises value for both companies and enables renewable ammonia to be delivered worldwide by Yara’s shipping fleet. The marketing and distribution agreement is targeted to be completed during the first half of 2026. Yara is the world’s largest trader and shipper of ammonia, currently transporting over 4 million t/a, supported by Yara’s 12 ammonia vessels and 18 import terminals. In addition, Yara has a significant internal ammonia demand. Air Products is the world’s largest supplier of hydrogen and brings leading low-emission hydrogen and ammonia production at scale.

“Air Products’ two advanced projects are a strong strategic fit with Yara’s flexible nitrogen system – enabling energy diversification and profitable decarbonisation 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,” said Yara’s CEO Svein Tore Holsether.

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