decarbonfuse Icons/logo

Hydrogen

The Deal Structure Everyone's About to Copy

Published by Todd Bush on December 9, 2025

Something big just happened in the blue ammonia space. Yara International, the world's largest ammonia trader and shipper, is in advanced negotiations to acquire actual ownership of ammonia production assets at Air Products' Louisiana Clean Energy Complex. This isn't just another offtake agreement. It's a structural shift in how capital-intensive blue ammonia mega-projects get financed.

The Norwegian fertilizer giant would invest approximately $2 billion to $2.25 billion for roughly 25% of the total project cost, which is now estimated between $8 and $9 billion. In return, Yara gets ownership of the ammonia production, storage, and shipping facilities once the plant hits agreed performance levels. Air Products keeps the hydrogen and industrial gas side of the operation.

>> RELATED: Louisiana's $3.5B Carbon Capture Surge Sets National Decarbonization Blueprint

What Makes This Structure Different

Most blue ammonia deals involve offtake agreements where producers sell to buyers under long-term contracts. This arrangement flips the script. Yara is taking equity ownership of the downstream assets, meaning they're owning the production, not just buying ammonia.

Here's how the split works:

air products yara hydrogen split

The operational structure of the Air Products and Yara joint venture, detailing asset ownership and the 80/20 split of low-carbon hydrogen for ammonia production and existing pipeline infrastructure.

>> In Other News: Elemental Clean Fuels Powers Kamloops' Largest Green Hydrogen Initiative

The Louisiana Clean Energy Complex at a Glance

When complete, this will be the world's largest low-carbon energy complex. The CO2 generated during hydrogen production will be sequestered by a third party under a long-term agreement that Air Products expects to announce later.

air products yara project facts

A breakdown of the financial and operational targets for the Air Products and Yara low-carbon ammonia facility, highlighting the projected $8-9 billion investment, production capacities, and the timeline for commercial completion by 2030.

Why Both Companies Need This Deal

For Air Products, the arrangement solves a major problem. The Louisiana project had funding paused earlier this year after the company's new management team sought to de-risk it. Investors questioned whether the project overstretched Air Products' capital allocation.

Eduardo Menezes, Chief Executive Officer, Air Products

"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 Louisiana and Saudi Arabia."

Eduardo Menezes, Chief Executive Officer, Air Products

For Yara, the deal plugs directly into their existing infrastructure. The company operates the largest global ammonia network with 12 vessels and 18 import terminals, currently transporting over four million metric tonnes annually. They also have significant internal ammonia demand for their fertilizer business.

Svein Tore Holsether, Chief Executive Officer, Yara International

"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 Louisiana project builds on a proven, capital-efficient model; producing ammonia from externally sourced hydrogen and delivering strong returns."

Svein Tore Holsether, Chief Executive Officer, Yara International

>> RELATED: Hydrogen Hubs Face Critical Turning Point

The NEOM Connection

The Louisiana deal isn't happening in isolation. In parallel, Yara and Air Products are also negotiating a marketing and distribution agreement for renewable ammonia from the NEOM Green Hydrogen Project in Saudi Arabia. That project is now more than 90% complete and expected to begin commercial production in 2027.

Under this arrangement, Yara would commercialize, on a commission basis, ammonia volumes that Air Products doesn't sell as renewable hydrogen in Europe. The NEOM facility will produce up to 1.2 million tonnes of renewable ammonia per year, with the agreement targeted for completion in the first half of 2026.

>> RELATED: 14 Green Hydrogen Projects Reshaping America's Energy Future

What This Means for the Industry

The deal demonstrates a maturing approach to financing massive decarbonization projects. Rather than one company bearing all the risk, this structure lets each party focus on what they do best. Air Products handles hydrogen production and industrial gas operations. Yara manages ammonia production, distribution, and market access.

If the final investment decision lands by mid-2026 as targeted, expect other developers to study this playbook. The blue ammonia space is heating up, and finding the right financial structure could mean the difference between projects that get built and those that stay on paper.

Icons/external Source

Add Comments

Subscribe to the newsletter

Icons/inbox check

Daily decarbonization data and news delivered to your inbox

Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.


Latest issues

  • The Deal Structure Everyone's About to Copy

    Inside This Issue 💼 The Deal Structure Everyone's About to Copy 📈 Exxonmobil Raises Its 2030 Plan – Transformation Delivering Higher Earnings, Stronger Cash Flow, and Greater Returns ⚡ Nextera Wor...

  • Inside XCF Global's $300M Bet to Double U.S. SAF Output

    Inside This Issue ✈️ Inside XCF Global's $300M Bet to Double U.S. SAF Output ⚙️ Capsol Technologies Signs MoU with US Utility to Deploy CapsolGT® for Low-carbon Gas Power Generation 🏭 Babcock &amp...

  • 64 Carbon Projects Were Stuck. Texas Just Unlocked Them

    Inside This Issue 🛢️ 64 Carbon Projects Were Stuck. Texas Just Unlocked Them ⚙️ In Ohio, Hydrogen Industry Presses on Despite Federal Uncertainty 🧲 Agami Zero Breaks Through With Magnetic Hydrogen...

View all issues

Company Announcements

Daily decarbonization data and news delivered to your inbox

Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.

Subscribe illustration