Air Products and Yara in Advanced Negotiations to Partner on Low-emission Ammonia Projects

Rhea-AI Summary

Air Products (NYSE:APD) and Yara are in advanced negotiations to link Air Products' low‑emission ammonia projects in Louisiana and Saudi Arabia with Yara's global ammonia network.

Key terms: Louisiana project targets >750 million scfd low‑carbon hydrogen with 95% CO2 capture, producing 2.8 million tpy low‑carbon ammonia with Yara acquiring ammonia assets for ~25% of total project cost (estimated $8–9 billion) and a 25‑year offtake; FIDs targeted mid‑2026 and commercial completion expected by 2030. NEOM project is >90% complete; commercial production expected 2027 with up to 1.2 million tpy renewable ammonia and a Yara marketing agreement targeted H1 2026.

Positive

• Planned production: 2.8 million tpy low‑carbon ammonia
• Hydrogen capacity: >750 million scfd low‑carbon hydrogen
• Large CO2 capture: 95% capture rate, ~5 million tpy CO2 sequestered
• Yara equity role: acquiring ammonia assets for ~25% of cost
• Long‑term supply: 25‑year hydrogen offtake to Yara
• NEOM progress: project >90% complete; production expected 2027

Negative

• Final investment decisions dependent on air permits and contracts
• Estimated project cost of $8–9 billion implies large capital needs
• Targeted completion by 2030 creates long development timeline
• CO2 sequestration depends on a third party under future agreement

News Market Reaction

-9.45% 2.2x vol

137 alerts

-9.45% News Effect

-7.9% Trough in 5 hr 20 min

-$5.81B Valuation Impact

$55.67B Market Cap

2.2x Rel. Volume

On the day this news was published, APD declined 9.45%, reflecting a notable negative market reaction. Argus tracked a trough of -7.9% from its starting point during tracking. Our momentum scanner triggered 137 alerts that day, indicating very high trading interest and price volatility. This price movement removed approximately $5.81B from the company's valuation, bringing the market cap to $55.67B at that time. Trading volume was elevated at 2.2x the daily average, suggesting increased selling activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Louisiana project cost: $8–9 billion Hydrogen capacity: >750 million standard cubic feet/day CO2 capture rate: 95 percent +5 more

8 metrics

Louisiana project cost $8–9 billion Estimated total cost of Louisiana Clean Energy Complex

Hydrogen capacity >750 million standard cubic feet/day Low-carbon hydrogen production at Louisiana Clean Energy Complex

CO2 capture rate 95 percent Share of CO2 captured during normal operation at Louisiana complex

Low-carbon ammonia output 2.8 million tonnes per year Ammonia production for Yara from Louisiana project

CO2 captured 5 million tonnes per year High purity CO2 to be sequestered from Louisiana facility

Renewable ammonia offtake 1.2 million tonnes per year Air Products sole offtaker under NEOM Green Hydrogen Project

Yara ammonia shipping Over 4 million metric tonnes annually Current global ammonia transport volume by Yara

Hydrogen pipeline length 700 miles Air Products’ U.S. Gulf Coast hydrogen pipeline system

Market Reality Check

Price: $283.12 Vol: Volume 1,291,399 vs 20-da...

normal vol

$283.12 Last Close

Volume Volume 1,291,399 vs 20-day average 1,184,854, indicating slightly elevated trading activity. normal

Technical Shares at $260.69 are trading below the 200-day MA of $278.63 and about 23.58% under the 52-week high.

Peers on Argus

Among key chemical peers, ECL (-1.91%), SHW (-0.67%), PPG (-0.28%) and LYB (-1.2...

Among key chemical peers, ECL (-1.91%), SHW (-0.67%), PPG (-0.28%) and LYB (-1.25%) were down, while DD rose 1.53%, suggesting APD’s setup reflects stock-specific rather than broad sector dynamics.

Historical Context

5 past events · Latest: Nov 25 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 25	Board change notice	Neutral	+0.0%	Director Lisa Davis chose not to stand for re-election in 2026.
Nov 25	Conference appearance	Neutral	+0.9%	CEO and CFO scheduled to speak at Citi’s Basic Materials Conference.
Nov 19	Dividend declaration	Positive	+0.4%	Company declared a quarterly dividend of <b>$1.79</b> per share.
Nov 06	Earnings and guidance	Positive	+8.9%	Reported adjusted EPS of <b>$12.03</b> and issued fiscal 2026 EPS guidance.
Oct 09	Earnings call notice	Neutral	-2.2%	Announced webcast details for fiscal Q4 2025 earnings teleconference.

Pattern Detected

Recent news reactions have generally aligned with the nature of the announcements, with the strongest move tied to the fiscal 2025 earnings and guidance update.

Recent Company History

Over the last few months, Air Products reported fiscal 2025 results, showing a GAAP loss per share of $1.74 driven by about $3.7 billion in pre-tax charges, alongside adjusted EPS of $12.03 and fiscal 2026 guidance of $12.85–$13.15. The stock reacted about 8.94% higher to that update. Other items, including a quarterly dividend of $1.79 per share, a director’s planned retirement effective after January 28, 2026, and investor conference appearances, all saw modest, directionally consistent price moves. Today’s low-emission ammonia partnership fits into this ongoing strategic and capital-intensive growth narrative.

Market Pulse Summary

The stock moved -9.4% in the session following this news. A negative reaction despite the strategic ...

Analysis

The stock moved -9.4% in the session following this news. A negative reaction despite the strategic nature of this announcement would fit a cautious stance toward large, long-dated projects. The Louisiana Clean Energy Complex, at an estimated $8–9 billion cost and targeting completion by 2030, plus NEOM’s expected 2027 start, adds significant execution and timing risk. Past news, especially the earnings update with sizeable $3.7 billion charges, shows that capital-intensive plans can sharpen focus on balance sheet and return profiles.

Key Terms

standard cubic feet, carbon dioxide (CO2), offtake agreement, renewable ammonia, +2 more

6 terms

standard cubic feet technical

"designed to produce >750 million standard cubic feet per day of low-carbon hydrogen"

A standard cubic foot is a unit for measuring the volume of natural gas when adjusted to a fixed temperature and pressure so different readings are directly comparable. Think of it like counting apples after putting them all on the same scale so size and weight differences don’t distort the total. Investors use this measure to compare production, sales, reserves and revenue consistently across wells, pipelines and contracts, which affects valuation and cash flow.

carbon dioxide (CO2) medical

"capturing 95 percent of the carbon dioxide (CO2) generated during normal operation"

Carbon dioxide (CO2) is a colorless, odorless gas produced when living things breathe and when fuels or materials are burned or processed; it acts like a blanket in the atmosphere, trapping heat and driving climate change. Investors care because CO2 levels shape government rules, taxes and market prices for energy, products and emissions credits, which can change a company’s costs, legal risks and the value of its assets over time.

offtake agreement financial

"under a 25-year long-term offtake agreement to produce 2.8 million tonnes"

A contract in which a buyer commits to purchase a set portion or percentage of a producer’s future output—such as minerals, energy, agricultural goods, or manufactured products—often over a multi‑year period. It matters to investors because it creates predictable sales and cash flow, reduces the risk of unsold inventory, and can make projects easier to finance; think of it like pre‑selling future harvests or securing long‑term customers before production begins.

renewable ammonia technical

"marketing and distribution agreement for renewable ammonia from the Saudi Arabian project"

Ammonia produced using low-carbon energy sources and processes instead of fossil fuels; it is chemically the same as traditional ammonia but made with electricity from wind, solar, hydro or with captured carbon-free hydrogen. It matters to investors because ammonia is a global feedstock and fuel—like a rechargeable energy carrier and industrial ingredient—so cleaner production can unlock new markets, reduce regulatory and carbon costs, and create demand tied to decarbonization policies and infrastructure investment.

metric tonnes technical

"currently transporting over four million metric tonnes annually, which is supported"

Metric tonnes are a unit of mass equal to 1,000 kilograms (about 2,205 pounds), roughly the weight of a small car. Investors see this unit used to report volumes of commodities, raw materials and finished goods—so knowing how many metric tonnes are produced, shipped or stored helps assess supply, demand and revenue potential. It provides a common scale for comparing production, inventory and trade across markets and companies.

sequestered technical

"high purity CO2 captured by the Air Products facility would be sequestered by a third party"

Sequestered means assets, funds, documents, or other resources have been legally or operationally set aside and isolated from normal use or access, often under the control of a court, regulator, trustee, or escrow agent. For investors this matters because sequestered items are effectively unavailable for business operations or payouts until released, which can reduce liquidity, alter a company’s cash flow and valuation, and increase uncertainty about when or if those resources will be returned.

AI-generated analysis. Not financial advice.

Plans connect Air Products' low-emission ammonia projects in the U.S. and Saudi Arabia with Yara's world-scale ammonia network

• Final Investment Decisions by both companies for the U.S. project (Louisiana Clean Energy Complex) are targeted by mid-2026, subject to, among other things, air permit issuance and finalization of construction contracts; and
• Final marketing and distribution agreement for renewable ammonia from the Saudi Arabian project (NEOM Green Hydrogen Project) is targeted for the first half of 2026.

LEHIGH VALLEY, Pa. and OSLO, Norway, Dec. 8, 2025 /PRNewswire/ -- World-leading hydrogen supplier and global industrial gases company Air Products (NYSE:APD) and world-leading crop nutrition and ammonia company Yara International ASA (OSE:YAR) 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 by 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.

Leveraging complementary strengths to drive value creation in low-emission ammonia
Yara is the world's largest trader and shipper of ammonia, currently transporting over four million metric tonnes annually, which is supported by Yara's 12 ammonia vessels and 18 import terminals. In addition, Yara has a significant internal ammonia demand. Air Products is the world's largest supplier of hydrogen and brings leading low-emission hydrogen and ammonia production at scale. The collaboration would enable the companies to meet the increasing demand for low-emission ammonia in the coming years, particularly in Europe both for Yara's internal consumption and other customers.

"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 Air Products' Chief Executive Officer Eduardo Menezes.

"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," said Yara's CEO Svein Tore Holsether.

About Yara International ASA
Yara's mission is to responsibly feed the world and protect the planet. We pursue a strategy of sustainable value growth through reducing emissions from crop nutrition production and developing low-emission energy solutions. Yara's ambition is focused on growing a nature-positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.

To drive the green shift in fertilizer production, shipping, and other energy intensive industries, Yara will produce ammonia with significantly lower emissions. We provide digital tools for precision farming and work closely with partners at all levels of the food value chain to share knowledge and promote more efficient and sustainable solutions.

Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry's only global crop nutrition company. With 17,000 employees and operations in more than 60 countries, sustainability is an integral part of our business model. In 2024, Yara reported revenues of USD 13.9 billion.

About Air Products
Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets and generating a cleaner future. The Company supplies essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, medical and food. As the leading global supplier of hydrogen, Air Products also develops, engineers, builds, owns and operates some of the world's largest clean hydrogen projects, supporting the transition to low- and zero-carbon energy in the industrial and heavy-duty transportation sectors. Through its sale of equipment businesses, the Company also provides turbomachinery, membrane systems and cryogenic containers globally.

Air Products had fiscal 2025 sales of $12.0 billion from operations in approximately 50 countries. For more information, visit airproducts.com or follow us on LinkedIn, X, Facebook or Instagram.

This release contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about the arrangements that are the subject of this release and their expected impact and timing, and about the Company's business outlook and investment opportunities. These forward-looking statements are based on management's expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025 and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based. 

View original content:https://www.prnewswire.com/news-releases/air-products-and-yara-in-advanced-negotiations-to-partner-on-low-emission-ammonia-projects-302635089.html

SOURCE Air Products

FAQ

What did Air Products (APD) and Yara announce on December 8, 2025 regarding the Louisiana Clean Energy Complex?

They plan to combine assets so Yara acquires ammonia facilities for ~25% of project cost and to offtake hydrogen to produce 2.8 million tpy low‑carbon ammonia; FIDs targeted mid‑2026.

How much low‑carbon hydrogen will the Louisiana APD project produce and what is the CO2 capture rate?

The complex is designed to produce >750 million scfd of low‑carbon hydrogen and capture 95% of CO2 during normal operation.

When are final decisions and commercial completion targeted for APD and Yara’s Louisiana project (APD)?

Final investment decisions are targeted by mid‑2026, with project completion expected by 2030.

What is the status and timing for the NEOM Green Hydrogen Project ammonia offtake with Air Products (APD)?

NEOM is reported as >90% complete, expected to start commercial production in 2027, with Air Products as sole offtaker of up to 1.2 million tpy renewable ammonia.

How will Yara commercialize ammonia from the NEOM project under the proposed agreement with APD?

Yara would market and distribute ammonia not sold by Air Products in Europe on a commission basis, using its global shipping and terminal network.

What material logistics and storage figures did Yara disclose relevant to the partnership with APD?

Yara currently transports over 4 million tonnes annually and operates 12 ammonia vessels and 18 import terminals.