Air Products - Saudi utility developer ACWA - NEOM - Yara : The first fully integrated value chain for renewable ammonia
Air Products has finalized a marketing and distribution agreement with Yara International that will see the Norwegian fertilizer major buy and sell renewable ammonia produced at Saudi Arabia's NEOM Green Hydrogen Project. Air Products' leadership describes the arrangement as establishing the first fully integrated value chain for renewable ammonia — connecting production at what is billed as the world's largest green ammonia plant directly to a global distribution network for the first time.
From production to market, in one chain
Until now, green ammonia projects have typically had to assemble production, offtake, shipping and end-market sales through separate, often improvised arrangements. The Yara agreement changes that for NEOM: ammonia produced at the plant's Oxagon site will move to Yara on a free-on-board basis and then flow through Yara's existing infrastructure — a network built around 12 ammonia vessels and 18 import terminals worldwide — reaching customers without the gaps that have slowed earlier renewable ammonia projects to market.
The project behind the deal
The NEOM Green Hydrogen Project is a joint venture involving Air Products, Saudi utility developer ACWA Power, and NEOM. It combines roughly 4 GW of renewable generation capacity with 2.2 GW of electrolysis capacity to produce green hydrogen, which is then converted into an estimated 1.2 million tonnes of renewable ammonia per year via the Haber-Bosch process. The plant is reported to be more than 90% complete, with commercial production targeted for 2027.
Risk-sharing built into the commercial terms
Under the agreement, Yara earns a variable commission structured to reward selling the ammonia at a "green" premium, while Air Products absorbs the gap between its fixed-cost offtake price and the market clearing price. In effect, Air Products transfers the risk of finding buyers for NEOM's output to Yara, while retaining exposure to how ammonia prices move.
Part of a broader strategic reset
The agreement was finalized alongside Air Products' latest quarterly results, in which the company raised its full-year earnings guidance while also confirming a roughly $2.9 billion pre-tax charge to exit its Louisiana Clean Energy Complex project. Air Products has stated that the Yara agreement is independent of the Louisiana decision, positioning NEOM — rather than Louisiana — as the flagship proof point for its low-emission ammonia strategy going forward.
The deal follows preliminary terms the two companies agreed in December 2025, when they first signed on to jointly advance low-emission ammonia offtake from both the NEOM and Louisiana projects.
Compiled from public reporting on the Air Products–Yara marketing and distribution agreement for NEOM renewable ammonia, July 2026.