In the ever-turbulent energy market, a new trend has emerged that sees companies combining plans to boost assets in the market. This has become especially true in the hydrogen and ammonia market due to the slow and insufficient investments in infrastructure. Air Products, a market-leading hydrogen and ammonia company with substantial assets, has developed a plan with Yara International, a global ammonia and crop nutrition company, to combine their significant assets to increase hydrogen and ammonia output across the United States and the Kingdom of Saudi Arabia.
Hydrogen and ammonia production have become the belle of the renewable energy ball
The international energy market has been developing frameworks to increase the production capacity of the hydrogen and ammonia market. Amid the calls to diversify energy assets and phase out reliance on fossil fuel-based energy generation, hydrogen has emerged as the undisputed king of the renewable energy market and has now been boosted by the news that Air Products and Yara are joining forces on two new hydrogen projects in the US and Saudi Arabia.
The pair of companies aims to integrate Air Products’ hydrogen and ammonia production capabilities with Yara’s market-leading ammonia supply network. The world has been consumed by the need to reduce emissions in the energy market and increase renewable energy generation over the coming years.
The Louisiana Clean Energy Complex is one of the projects targeted by Air Products and Yara
Air Products is exemplifying its substantial expertise in the hydrogen market by developing what will become the largest low-carbon energy complex anywhere in the world. The Louisiana Clean Energy Complex in the United States has been designed to produce approximately 750 million standard cubic feet per day of low-carbon hydrogen.
While Air Products is the project developer, Yara will be waiting in the wings to acquire the ammonia production once it reaches acceptable levels. Yara will also take over the necessary storage and transport of the ammonia produced for roughly 25% of the total project costs. Next up for the pair of companies will be the NEOM hydrogen project in Saudi Arabia.
“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,” – Air Products’ Chief Executive Officer Eduardo Menezes.
The NEOM Green Hydrogen Project is set to reshape the global energy market
Seeing as though the NEOM hydrogen project has reached a critical point, with over 90% of construction being completed, the next step is to offer an offtake agreement for the hydrogen and ammonia produced. Air Products has been selected as the sole offtaker for the reported 1.2 million tonnes per year of renewable ammonia at the site.
Transporting hydrogen and ammonia can be exceedingly expensive, and Yara will handle the transportation of the energy resources through its vast maritime transport vessels that will boost the sector globally. Both companies are targeting final investment decisions for the two projects by 2026.
“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. – Yara’s CEO Svein Tore Holsether
The global hydrogen and ammonia production market is growing at an incredible pace
With the progress made at the NEOM Green Hydrogen and ammonia facility in the Kingdom of Saudi Arabia, and the Louisiana Clean Energy Complex, Yara and Air Products are set to bring in the new year with a renewed sense of optimism. The need to diversify the international energy market has become paramount for the global community. Thankfully, the hydrogen and ammonia sector can deliver vast amounts of energy through an entirely clean energy production mechanism.
