Yara International ASA announced its U.S. subsidiary, Yara North America Inc., has reached an agreement to acquire Gulf Coast Ammonia’s ammonia production facility in Texas City, Texas, from GCA Holdings LLC, which is affiliated with Lotus Infrastructure Partners and MB Energy.
The transaction is valued at $1.3 billion.
The acquisition supports Yara’s strategy to diversify its energy exposure and improve the competitiveness of its global ammonia production footprint. Yara will own the ammonia plant, which has an expected nameplate capacity of 1.3 million metric tons per year. Air Products will supply industrial gases to Yara through a long-term supply agreement.
Yara plans to use its midstream ammonia platform to supply external customers as well as its own internal sourcing needs.
The plant is currently in commissioning and is expected to continue ramping up toward full production and stable operations by the end of 2026. Production is targeted above nameplate capacity.
Yara said investing in the U.S. remains highly attractive and reinforces the company’s long-standing presence as a 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,” said Svein Tore Holsether, president and CEO of Yara. “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 U.S. and beyond.”
The acquisition includes the ammonia synthesis loop, related ammonia storage and exclusive use of loading infrastructure. Hydrogen and nitrogen supply, along with other utilities, will be provided through a long-term contract with Air Products, which owns and operates the largest hydrogen pipeline network in the U.S.
Yara said the agreement supports its strategic priority of gas diversification by significantly increasing its exposure to U.S. gas through Henry Hub. The setup is similar to Yara’s operations in Freeport, Texas, where a comparable model, combined with Yara’s ammonia expertise, has supported operational improvements and consistently strong performance.
The Texas City plant is completing outstanding work toward a gradual ramp-up to its 1.3 million metric ton nameplate capacity and stable operations, which are currently anticipated by the end of 2026. Yara said it will work with Air Products to improve plant reliability and performance, with a goal of reaching or exceeding nameplate capacity.
Following technical due diligence, Yara said it confirmed the GCA plant’s potential to become one of the most efficient and profitable assets in its global portfolio, strengthening Yara’s position on the global ammonia cost curve.
Yara said its flexible system enables multiple pathways for profitable decarbonization. Through the acquisition, Yara and Air Products are extending their collaboration. The companies also are finalizing a previously announced marketing and distribution agreement for renewable ammonia from the NEOM Green Hydrogen plant in Saudi Arabia.
Yara said the GCA setup also presents opportunities for a flexible, step-by-step entry into low-carbon ammonia, subject to regulatory development and financial viability.
The $1.3 billion transaction increases Yara’s total capital expenditure outlay for 2026 to $2.5 billion. The company said the investment is within the expected capex allocated for ammonia investments from 2026 through 2030, as outlined at its Capital Markets Day in January 2026.
As of the first quarter of 2026, Yara reported a net debt-to-EBITDA ratio of 1.00. The acquisition implies a pro forma net debt-to-EBITDA ratio of 1.73, including the dividend payment made in May, which Yara said remains within the limits of its capital allocation policy.
Yara also reiterated its 2026-2030 capital allocation framework, which targets average annual capex spending of $1.2 billion in real terms, strict capital discipline and shareholder returns in line with its dividend policy.
While the acquisition brings forward part of the company’s anticipated growth capex for the coming years, Yara said it also accelerates associated cash flows from new ammonia capacity. Further growth investments during the period will be limited and focused on selective, high-return opportunities.
Yara said it remains focused on strengthening cash flow and maintaining balance sheet robustness while continuing to deliver shareholder distributions. The company said it remains committed to maintaining a BBB/Baa2 credit rating, with a targeted mid- to long-term net debt-to-EBITDA ratio, excluding special items, of 1.5 to 2.0 and a net debt-to-equity ratio below 0.60.
Following completion of the acquisition, Yara’s immediate priority will be commissioning the GCA plant while delivering on its previously announced EBITDA improvement targets.
Sellers offered the plant for sale through an auction process facilitated by J.P. Morgan Securities LLC, which acted as financial adviser to GCA Holdings LLC in connection with the transaction.
Completion of the acquisition is subject to customary closing conditions, including receipt of relevant regulatory approvals.
