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.
