What's Happening?
Yara and Air Products are advancing negotiations to collaborate on a low-emission ammonia project in Louisiana. Air Products is developing a large-scale low-carbon energy complex designed to produce over
750 million standard cubic feet per day of low-carbon hydrogen, capturing 95% of the CO2 generated. Yara plans to acquire the ammonia production, storage, and shipping facilities, integrating the output into its global distribution network. The project aims to produce 2.8 million tonnes of low-carbon ammonia annually, with 80% of the hydrogen supplied to Yara under a 25-year agreement. The remaining hydrogen will be distributed via Air Products' pipeline system. Final investment decisions are expected by mid-2026, with project completion by 2030.
Why It's Important?
This partnership between Yara and Air Products is significant as it represents a major step towards reducing carbon emissions in industrial processes. The production of low-carbon ammonia is crucial for industries seeking to lower their carbon footprint, particularly in Europe where demand for such products is increasing. The project also highlights the strategic importance of the U.S. Gulf Coast as a hub for low-carbon energy production. By capturing and sequestering CO2, the project aligns with global efforts to combat climate change and supports the transition to cleaner energy sources.
What's Next?
The companies are targeting final investment decisions by mid-2026, with project completion expected by 2030. They also plan to collaborate on the NEOM Green Hydrogen Project in Saudi Arabia, which is nearing completion and expected to start production in 2027. Yara will commercialize ammonia not sold as renewable hydrogen in Europe, expanding its distribution network. The success of these projects could set a precedent for future low-emission energy initiatives and influence policy and investment in sustainable industrial practices.
