Air Products Stock Drops As Talks With Yara Continue

Air Products and Chemicals Inc. (NYSE:APD) and Yara International ASA (OTC:YARIY) are collaborating to connect low-emission ammonia supplies from projects in Louisiana and Saudi Arabia to Yara's global distribution network, with the aim of making key commercial decisions in 2026.

The companies said the collaboration would combine Air Products' low-emission hydrogen production with Yara's ammonia production, shipping and terminals, with Europe a major focus for demand.

• Air Products shares are retreating from recent levels. Why is APD stock dropping?

Louisiana Timeline and Structure

Air Products is developing the Louisiana Clean Energy Complex, designed to produce more than 750 million standard cubic feet per day of low-carbon hydrogen while capturing 95% of operational CO2. The companies aim to make final investment decisions by mid-2026, contingent upon items such as air permits and finalized construction contracts, with an expected completion date of 2030.

Under the outlined model, Yara would purchase the ammonia production, storage and shipping assets after performance targets are met, paying about 25% of total project costs, which the companies estimate at $8 billion to $9 billion.

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Air Products would own and operate the industrial gases production and supply about 80% of the site's hydrogen to Yara under a 25-year agreement to support 2.8 million metric tons of low-carbon ammonia annually; the rest would go to other Gulf Coast customers via Air Products' 700-mile hydrogen pipeline system.

The companies stated that the facility could capture approximately five million metric tons per year of high-purity CO2 for sequestration by a third party under a long-term agreement to be announced later.

NEOM and Marketing Plan

The NEOM Green Hydrogen Project in Saudi Arabia is more than 90% complete and is expected to begin commercial production in 2027, with Air Products as the sole offtaker for up to 1.2 million metric tons per year of renewable ammonia.

Air Products and Yara said they expect to finalize a marketing and distribution agreement in the first half of 2026, in which Yara would sell, for a commission, volumes not sold by Air Products as renewable hydrogen in Europe.

APD Price Action: APD shares are trading 9.36% lower at $236.30 as of publication on Monday.

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