Air Products and Yara International have entered advanced negotiations to integrate their capabilities across two of the world’s most significant low-emission energy projects.
The collaboration targets the Louisiana Clean Energy Complex in the United States and the NEOM Green Hydrogen Project in Saudi Arabia. By combining Air Products’ expertise in hydrogen production with Yara’s status as an ammonia trader, the partnership aims to meet the surging global demand for clean fuel and sustainable fertilizers.
The Louisiana Clean Energy Complex:
Located in Darrow, Louisiana, the facility is designed as the world’s largest low-carbon energy complex.
The Production: It will produce over 750 million standard cubic feet of low-carbon hydrogen daily, with 95% of CO₂ emissions captured and permanently sequestered.
The Deal Structure: Yara is slated to acquire the ammonia production and shipping assets for approximately 25% of the total project cost, which ranges from $8 billion to $9 billion.
Offtake Agreement: Under a 25-year contract, Air Products will supply 80% of its low-carbon hydrogen to Yara, yielding 2.8 million tons of low-carbon ammonia annually for Yara’s global network.
NEOM:
The NEOM Green Hydrogen Project in Saudi Arabia—already 90% complete as of January 2026—is the world’s first large-scale renewable ammonia plant.
Sole Offtaker: Air Products holds exclusive rights to the plant’s 1.2 million tons of annual renewable ammonia.
Distribution Synergy: Yara will utilize its fleet of 12 ammonia vessels and 18 import terminals to commercialize any ammonia not sold by Air Products in Europe. This agreement, expected to be finalized by mid-2026, ensures that carbon-free fuel from the Red Sea reaches European industrial hubs efficiently.
Leverage:
This partnership leverages a capital-efficient model that shares the infrastructure costs of the energy transition. For Yara, it provides a stable, low-carbon feedstock to decarbonize its fertilizer production. For Air Products, it secures a world-class distributor, reducing the commercial risk of its multi-billion-dollar blue and green investments. Collectively, these projects are estimated to mitigate over 10 million metric tons of CO₂ emissions per year.
“We are pleased to be working with Yara, the world’s leading fertilizer company, as we advance the global low-emission ammonia market and maximize value from our projects in Louisiana and Saudi Arabia,” said Eduardo Menezes, CEO, Air Products.
“Air Products’ two advanced projects are a strong strategic fit with Yara’s flexible nitrogen system—enabling energy diversification and profitable decarbonization while aligning with our disciplined capital allocation policy,” said Svein Tore Holsether, CEO, Yara International.
