Yara acquires Gulf Coast Ammonia plant

Yara International has reached an agreement to acquire Gulf Coast Ammonia’s (GCA) ammonia production facility in Texas City, Texas from GCA Holdings LLC, for a consideration of $ 1.3 billion. Yara says that the acquisition is part of its strategy to diversify its energy exposure and enhance the competitiveness of its global ammonia production footprint. Yara will own the ammonia plant with an expected nameplate capacity of 1.3 million t/a, with Air Products supplying industrial gases to Yara as part of a long-term supply agreement. Yara will use its midstream ammonia platform to supply both external customers and its own internal sourcing needs.

The plant is currently in commissioning and is anticipated to continue ramping up toward full production and stable operations by end of 2026, with production targeted at above nameplate capacity.

Yara sees investing in the US as highly attractive, reinforcing its long-time presence as a reliable provider of crop nutrition solutions and producer of ammonia.

“By bringing this plant into the Yara portfolio, we are strengthening our operational resilience and diversifying our energy costs at a time when supply flexibility matters more than ever. This addition of world-class U.S. production capacity supports our long term strategy of diversifying our energy exposure, capturing economies of scale, and lowering both fixed costs and capital per tonne. With a century of experience and a proven commitment to safety across our operations, sales, and distribution networks in over 60 countries, Yara will contribute to reliable supply across critical value chains, in the US and beyond,” said Svein Tore Holsether, President and CEO.

The acquisition includes the ammonia synthesis loop and related ammonia storage and exclusive use of loading infrastructure. Hydrogen and nitrogen supply, along with other utilities, are supplied through a long-term contract with Air Products, which owns and operates the largest hydrogen pipeline network in the United States. This contributes to Yara’s strategic priority of gas diversification, with a significant increase of US gas exposure (Henry Hub). The set-up is similar to Yara’s operations in Freeport, Texas, where a comparable model combined with Yara’s ammonia expertise has supported strong operational improvements and consistently high performance.