Yara and Air Products finalize NEOM green ammonia marketing deal for 1.2 million t/yr plant
Yara International and Air Products have finalized a marketing and distribution agreement for renewable ammonia from the NEOM Green Hydrogen Project in Saudi Arabia, creating what both companies described as the first fully integrated value chain for NEOM green ammonia. Under the deal, Yara will commercialize the portion of renewable ammonia that Air Products does not convert back into hydrogen for European customers.
Air Products holds a 30-year exclusive offtake contract for all ammonia produced at the NEOM facility, which has a planned annual capacity of 1.2 million metric tons. The company intends to crack a portion of the ammonia into green hydrogen for sale in Europe, including under an existing agreement with TotalEnergies. The new partnership with Yara allows remaining volumes to reach broader markets through Yara’s established global shipping and distribution network, which currently handles more than 4 million metric tons of ammonia annually.
Air Products CEO Eduardo Menezes confirmed the NEOM green ammonia agreement during the company’s Q2 fiscal 2026 earnings call on July 30. Yara will receive commission-based compensation for managing sales and distribution. The arrangement reduces Air Products’ need for downstream green hydrogen infrastructure, potentially lowering its requirement for ammonia cracking capacity in Europe. Air Products has proposed several ammonia cracking plants across northwest Europe but has not yet approved final investments for any of those facilities.
The NEOM Green Hydrogen Project, an equal joint venture between Air Products, ACWA Power and NEOM, is expected to produce its first ammonia in 2027 after a prolonged commissioning process. Air Products expects no financial gain or loss from the project in 2027 as the plant ramps up.
Source: World Fertilizer
What to know about the NEOM green ammonia deal
The NEOM Green Hydrogen Project is an equal joint venture between Air Products, ACWA Power and NEOM in Saudi Arabia. It is designed to produce up to 1.2 million metric tons of renewable ammonia per year using solar and wind energy to power electrolysis-based green hydrogen production. The project is more than 90% complete and expects to begin commercial production in 2027.
Yara operates the world’s largest ammonia shipping fleet and handles more than 4 million metric tons of ammonia annually through 12 vessels and 18 import terminals. By partnering with Yara, Air Products can commercialize NEOM’s output without investing heavily in its own downstream logistics and cracking infrastructure. The arrangement is especially useful for early production volumes before any European cracking facilities come online.
Air Products announced on June 30, 2026, that it will not proceed with the Louisiana Clean Energy Complex (LCEC), a blue hydrogen-to-ammonia project. The company will take a pre-tax charge related to the decision. The LCEC cancellation redirects capital toward other priorities, including the NEOM partnership.
The deal positions NEOM as the world’s first large-scale source of renewable ammonia with a direct commercial pathway into fertilizer markets. Fertilizer production is widely regarded as the most commercially viable first use case for green ammonia, given existing infrastructure and steady demand. European and Japanese buyers are actively seeking low-carbon ammonia and urea to meet tightening emissions regulations.
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