** Updates share decline **

Dec. 8, 2025

— Jeff Ward, Lehigh Valley News Briefs

Air Products is in talks with a Norwegian fertilizer make to work together on two projects.

Shares of Air Products dropped more than $20 after the announcement.

Yara International, a fertilizer maker based in Oslo, would agree to buy ammonia from projects in Louisiana and Saudi Arabia, and take on $2 billion or so of the cost of the Louisiana project, according to a statement today from both companies.

The deal would reduce Air Products’ exposure to risk from price and production volume.

This paragraph from today’s statement sums up the reasoning behind the potential deal, with Air Products making ammonia and Yara shipping and selling it:

“Yara is the world’s largest trader and shipper of ammonia, currently transporting over four million metric tonnes annually, which is supported by Yara’s 12 ammonia vessels and 18 import terminals. In addition, Yara has a significant internal ammonia demand. Air Products is the world’s largest supplier of hydrogen and brings leading low-emission hydrogen and ammonia production at scale.”

Air Products Chief Executive Eduardo Menezes said during a conference call at 9 a.m. today that today’s news does not affect earnings forecasts made last month.

“Our announcement today has no impact on the adjusted earnings per share and capital guidance for 2026 that we provided on our fourth-quarter earnings call,” Menezes said.

The proposed deals:

In Louisiana: “Yara would acquire the ammonia production, storage and shipping facilities for approximately 25 percent of the total project cost,” according to the statement. That total cost is estimated at $8 billion to $9 billion. Yara would purchase ammonia from the plant for 25 years.

The Louisiana project will make “low-carbon” ammonia, meaning it is designed to create fewer emissions of carbon dioxide, a greenhouse gas that is linked to climate change. CO2 generated at the plant will be “sequestered,” not released into the atmosphere, “by a third party under a long-term agreement to be announced later.”

In Saudi Arabia: Yara would “commercialize, on a commission basis the ammonia not sold by Air Products as renewable hydrogen in Europe.”

Air Products’ NEOM “green hydrogen” project in Saudi Arabia is more than 90 percent complete, according to today’s statement. Ammonia can be converted back into hydrogen to make fertilizer. “Green hydrogen” is not a color; the term means the gas was produced with renewable energy and without generating carbon emissions.

NEOM is a huge project in northwestern Saudi Arabia, which seeks to broaden its economy beyond oil. The plan includes a city of 9 million people, a nature preserve and high-speed rail.

From the NEOM website: “No roads, cars or emissions, it will run on 100% renewable energy and 95% of land will be preserved for nature. People’s health and wellbeing will be prioritized over transportation and infrastructure, unlike traditional cities.”

Under former CEO Seifi Ghasemi, Air Products invested in the production of green hydrogen, which Ghasemi said would be used in heavy transportation and industry to reduce carbon dioxide emissions.

A boardroom battle earlier this year pushed Ghasemi out and brought Menezes in. Activist investors challenged how the company was being run, and some questioned the focus on clean energy versus Air Products’ traditional industrial gas business.

After Menezes took over, Upper Macungie Township-based Air Products dropped three projects, writing off costs estimated at as much as $3.1 billion.

Through all the changes, shares in Air Products (NYSE:APD) have meandered along.

At 10:41 a.m. today, the shares traded at $239.01, down $21.68 or about 8%. That’s well below the 52-week high of $341.14.

Air Products held a 9 a.m. conference call to discuss today’s news.

Here is a link to the conference call, a link to today’s statement and below, a cut-and-paste abbreviated version of the press release, leaving out boilerplate copy at the end:

12/08/2025 | LEHIGH VALLEY, PA USA / OSLO, NORWAY

Air Products and Yara in Advanced Negotiations to Partner on Low-emission Ammonia Projects

Plans connect Air Products’ low-emission ammonia projects in the U.S. and Saudi Arabia with Yara’s world-scale ammonia network

• Final Investment Decisions by both companies for the U.S. project (Louisiana Clean Energy Complex) are targeted by mid-2026, subject to, among other things, air permit issuance and finalization of construction contracts; and
• Final marketing and distribution agreement for renewable ammonia from the Saudi Arabian project (NEOM Green Hydrogen Project) is targeted for the first half of 2026.

World-leading hydrogen supplier and global industrial gases company Air Products (NYSE:APD) and world-leading crop nutrition and ammonia company Yara International ASA (OSE:YAR) are working to combine Air Products’ industrial gas capabilities and low-emission hydrogen with Yara’s ammonia production and distribution network: 

Louisiana Clean Energy Complex: Air Products is developing the world’s largest low-carbon energy complex in the state of Louisiana. The complex is designed to produce >750 million standard cubic feet per day of low-carbon hydrogen, capturing 95 percent of the carbon dioxide (CO₂) generated during normal operation.  

Air Products is the project developer and once the ammonia plant has achieved agreed upon performance levels, Yara would acquire the ammonia production, storage and shipping facilities for approximately 25 percent of the total project cost (estimated between $8-9 billion). Yara would assume responsibility for related operations and integrate the entire ammonia output into its global distribution network.  

Air Products would own and operate the industrial gases production, where approximately 80% of the low-carbon hydrogen would be supplied to Yara under a 25-year long-term offtake agreement to produce 2.8 million tonnes of low-carbon ammonia per year. The remaining hydrogen would be supplied to Air Products’ customers in the U.S. Gulf Coast via Air Products’ 700-mile hydrogen pipeline system. About five million tonnes per year of high purity CO₂ captured by the Air Products facility would be sequestered by a third party under a long-term agreement to be announced later.  

Final investment decisions by both companies are targeted by mid-2026, and project completion is expected by 2030. 

NEOM Green Hydrogen Project: The NEOM Green Hydrogen Project in Saudi Arabia is more than 90 percent complete and is expected to start commercial production in 2027. Air Products is the sole offtaker of up to 1.2 million tonnes per year of renewable ammonia.  

Air Products and Yara anticipate entering into a marketing and distribution agreement where Yara would commercialize, on a commission basis, the ammonia not sold by Air Products as renewable hydrogen in Europe. The model maximizes value for both companies and enables ammonia from the world’s first large-scale renewable ammonia plant to be delivered worldwide by Yara’s unparalleled shipping fleet. The marketing and distribution agreement is targeted to be completed during the first half of 2026.  

Leveraging complementary strengths to drive value creation in low-emission ammonia 
Yara is the world’s largest trader and shipper of ammonia, currently transporting over four million metric tonnes annually, which is supported by Yara’s 12 ammonia vessels and 18 import terminals. In addition, Yara has a significant internal ammonia demand. Air Products is the world’s largest supplier of hydrogen and brings leading low-emission hydrogen and ammonia production at scale. The collaboration would enable the companies to meet the increasing demand for low-emission ammonia in the coming years, particularly in Europe both for Yara’s internal consumption and other customers. 

“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,” said Air Products’ Chief Executive Officer Eduardo Menezes.  

“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,” said Yara’s CEO Svein Tore Holsether.  

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About Yara International ASA 
Yara’s mission is to responsibly feed the world and protect the planet. We pursue a strategy of sustainable value growth through reducing emissions from crop nutrition production and developing low-emission energy solutions. Yara’s ambition is focused on growing a nature-positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain. 

To drive the green shift in fertilizer production, shipping, and other energy intensive industries, Yara will produce ammonia with significantly lower emissions. We provide digital tools for precision farming and work closely with partners at all levels of the food value chain to share knowledge and promote more efficient and sustainable solutions. 

Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry’s only global crop nutrition company. With 17,000 employees and operations in more than 60 countries, sustainability is an integral part of our business model. In 2024, Yara reported revenues of USD 13.9 billion. 

About Air Products  
Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets and generating a cleaner future. The Company supplies essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, medical and food. As the leading global supplier of hydrogen, Air Products also develops, engineers, builds, owns and operates some of the world’s largest clean hydrogen projects, supporting the transition to low- and zero-carbon energy in the industrial and heavy-duty transportation sectors. Through its sale of equipment businesses, the Company also provides turbomachinery, membrane systems and cryogenic containers globally. 

Air Products had fiscal 2025 sales of $12.0 billion from operations in approximately 50 countries. For more information, visit airproducts.com or follow us on LinkedIn, X, Facebook or Instagram.