Yara walks away from Louisiana ammonia asset deal, redirects US growth capex
Yara International said on June 30 that it will not proceed with the acquisition of the ammonia production and distribution assets at the Louisiana Clean Energy Complex (LCEC) from Air Products, citing returns that fall short of its investment criteria. Yara will instead redirect capital to other mature US ammonia opportunities already under evaluation.
The two companies had been in advanced talks since a December 2025 agreement under which Air Products would build the roughly $8-9 billion complex and supply about 80% of its low-carbon hydrogen output to Yara under a 25-year offtake, converting it into 2.8 million tonnes of low-carbon ammonia annually. Air Products would have kept the industrial gases business and captured 95% of the facility’s carbon dioxide emissions.
Yara said it remains committed to strengthening its position on the ammonia cost curve and confirmed the majority of its 2026-2030 growth capital expenditure will still go toward large-scale US ammonia investment, with alternative projects at an advanced stage of evaluation. Separately, Yara confirmed it is finalizing a marketing and distribution agreement with Air Products to sell renewable ammonia from the NEOM Green Hydrogen project in Saudi Arabia, where Air Products is the sole offtaker of up to 1.2 million tonnes per year.
Source: Yara International
What to know about Yara’s Louisiana ammonia decision
Announced in December 2025, Air Products would have built the roughly $8-9 billion LCEC in Darrow, Louisiana, designed to produce more than 750 million cubic feet per day of low-carbon hydrogen while capturing about 95% of resulting CO2 emissions. Under the draft structure, Air Products would retain the industrial gases business while Yara would acquire the ammonia production, storage and shipping assets for roughly a quarter of the total project cost, taking about 80% of the hydrogen output under a 25-year offtake to produce 2.8 million tonnes per year of low-carbon ammonia.
Yara said the project’s expected financial returns no longer met its investment criteria, without detailing specific figures. The company gave no indication the exit reflects doubts about US ammonia demand broadly; it said it is actively evaluating other mature US ammonia opportunities that it expects to deliver more competitive returns.
No. Yara reiterated that the majority of its growth capital expenditure for 2026-2030 is still earmarked for large-scale US ammonia investment, and said alternative opportunities are at an advanced stage of evaluation. The company also reaffirmed its dividend policy and capital discipline.
Air Products had already flagged the Louisiana project as progressing toward a 2028 startup as of its most recent public project update, alongside its NEOM Green Hydrogen project in Saudi Arabia, which is nearing completion. Air Products has not said whether it will seek a new ammonia offtake partner for LCEC following Yara’s exit.
Separately from the Louisiana decision, Yara confirmed it is finalizing a marketing and distribution agreement with Air Products to sell renewable ammonia produced at the NEOM Green Hydrogen project in Saudi Arabia, where Air Products is the sole offtaker of up to 1.2 million tonnes per year of renewable ammonia. Under the planned arrangement, Yara would commercialize on commission any ammonia not directly sold by Air Products, using its shipping fleet to distribute it globally.
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