Air Products, Yara Advance Low-Emission Ammonia Plans for U.S. and Saudi Projects

The companies are negotiating agreements that would link low-carbon hydrogen production with large-scale ammonia distribution assets.

Dec. 12, 2025

2 min read

Air Products sign outside of the headquarters in Allentown, PA, USA, November 3, 2023.

Air Products and Yara are in advanced discussions to partner on low-emission ammonia projects in the United States and Saudi Arabia, according to the companies. The collaboration aims to connect Air Products’ hydrogen production capabilities with Yara’s global ammonia distribution network to meet growing demand for lower-emission feedstocks.

In the United States, the companies are progressing negotiations tied to the Louisiana Clean Energy Complex, which Air Products is developing to produce more than 750 million standard cubic feet per day of low-carbon hydrogen. The company said the facility is designed to capture 95% of the carbon dioxide generated during normal operations.

Once the ammonia plant achieves agreed performance levels, Yara would acquire the ammonia production, storage and shipping facilities for about a quarter of the project’s estimated cost and integrate the output into its distribution system, according to the release.

Air Products would continue to own and operate the industrial gases production. Approximately 80% of the hydrogen would be supplied to Yara under a 25-year offtake agreement to produce about 2.8 million tons per year of low-carbon ammonia. The remaining hydrogen would be delivered to U.S. Gulf Coast customers through Air Products’ pipeline network.

The project is targeting final investment decisions by mid-2026, with completion expected in 2030.

The companies are also working toward a marketing and distribution agreement tied to the NEOM Green Hydrogen Project in Saudi Arabia. According to the release, the project is more than 90% complete and expected to begin commercial production in 2027. Air Products is the sole offtaker of up to 1.2 million tons per year of renewable ammonia.

Under the planned agreement, Yara would market ammonia not sold as renewable hydrogen in Europe, using its existing shipping and terminal network. The companies expect to finalize the arrangement in the first half of 2026.

Both companies said the partnership leverages Air Products’ hydrogen production and Yara’s ammonia handling capabilities to support growing demand for low-emission ammonia in multiple regions.

This piece was created with the help of generative AI tools and edited by our content team for clarity and accuracy.