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
Key Figures
Market Reality Check
Peers on Argus
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
| 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. |
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.
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
This announcement highlights Air Products’ push into large-scale low-emission ammonia through the Louisiana Clean Energy Complex and the NEOM Green Hydrogen Project. The Louisiana facility targets >750 million standard cubic feet per day of low-carbon hydrogen and about 2.8 million tonnes of low-carbon ammonia annually, while NEOM is expected to supply up to 1.2 million tonnes of renewable ammonia per year. Investors may watch for final investment decisions targeted by mid-2026, execution toward the 2030 completion goal, and alignment with previously disclosed capital expenditure plans.
AI-generated analysis. Not financial advice.
Plans connect Air Products' low-emission ammonia projects in the
- 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.
Louisiana Clean Energy Complex: Air Products is developing the world's largest low-carbon energy complex in the state of
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
Air Products would own and operate the industrial gases production, where approximately
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
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
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
"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
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
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
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.
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SOURCE Air Products
FAQ
What did Air Products (APD) and Yara announce on December 8, 2025 regarding the Louisiana Clean Energy Complex?
How much low‑carbon hydrogen will the Louisiana APD project produce and what is the CO2 capture rate?
When are final decisions and commercial completion targeted for APD and Yara’s Louisiana project (APD)?
What is the status and timing for the NEOM Green Hydrogen Project ammonia offtake with Air Products (APD)?
How will Yara commercialize ammonia from the NEOM project under the proposed agreement with APD?
What material logistics and storage figures did Yara disclose relevant to the partnership with APD?
