Air Products and Yara International ASA are working to combine Air Products’ industrial gas capabilities and low-emission hydrogen 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 the state of Louisiana. The complex is designed to produce >750 million standard cubic feet per day of low-carbon hydrogen, capturing 95 percent of the carbon dioxide (CO2) generated during normal operation.
Air Products is the project developer and once the ammonia plant has achieved agreed upon performance levels, Yara would acquire the ammonia production, storage and shipping facilities for approximately 25 percent 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 five million tonnes per year 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 for mid-2026, and project completion is expected by 2030.
NEOM Green Hydrogen Project
The NEOM Green Hydrogen Project in Saudi Arabia is more than 90 percent complete and is 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 commercialize, on a commission basis, the ammonia not sold by Air Products as renewable hydrogen in Europe. The model maximizes value for both companies and enables ammonia from the world’s first large-scale renewable ammonia plant to be delivered worldwide by Yara’s unparalleled shipping fleet. The marketing and distribution agreement is targeted to be completed during the first half of 2026.
