Lehigh Valley-based Air Products, a leading supplier for hydrogen and global industry gases, announced it is working with Yara International out of Norway to combine its industrial gas capabilities and low-emission hydrogen with Yara’s ammonia production and distribution network.
The companies said they plan to connect Air Products’ low-emission ammonia projects in the U.S. and Saudi Arabia with Yara’s world-scale ammonia network. Final investment decisions for the two companies are targeted for mid-2026, subject to air permits and finalization of construction contracts. Additionally, the final marketing and distribution agreement for renewable ammonia from Air Products’ Saudi Arabian project is targeted for the first half of 2026.
“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,” Air Products’ Chief Executive Officer Eduardo Menezes said.
Under the terms of the agreement, Air Products would develop a low-carbon energy complex in Louisiana. The complex is designed to produce about 750 million cubic feet per day of low-emission carbon hydrogen, capturing 95 percent of the CO2 generated during operation.
Once the ammonia plant has achieved agreed upon performance levels, Yara would acquire the ammonia production, storage and shipping facilities for about 25 percent of the total project cost (or about $9 billion). Yara would then assume responsibility for related operations and integrate the ammonia output into its global distribution network.
Air Products would own and operate the industrial gases production, where about 80 percent of the low-carbon hydrogen would be supplied to Yara. The remaining hydrogen would be supplied to Air Products customers via the company’s 700-mile hydrogen pipeline system.
At Air Products’ Saudi facilities, Air Products and Yara would enter into a marketing and distribution agreement where Yara would commercialize the ammonia not sold by Air Products as renewable hydrogen in Europe.
“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. The Louisiana project builds on a proven, capital-efficient model; producing ammonia from externally sourced hydrogen and delivering strong returns,” Yara’s CEO Svein Tore Holsehter said.