Air Products Stock Drops As Talks With Yara Continue

Collaboration Overview - Air Products and Yara International are collaborating to connect low-emission ammonia supplies from projects in Louisiana and Saudi Arabia to Yara's global distribution network, aiming for key commercial decisions in 2026 [1] - The collaboration combines Air Products' low-emission hydrogen production with Yara's ammonia production, shipping, and terminals, focusing on European demand [1] Louisiana Clean Energy Complex - Air Products is developing the Louisiana Clean Energy Complex to produce over 750 million standard cubic feet per day of low-carbon hydrogen while capturing 95% of operational CO2 [2] - Final investment decisions are expected by mid-2026, contingent on air permits and finalized construction contracts, with completion anticipated in 2030 [2] Project Financials and Structure - Yara will purchase ammonia production, storage, and shipping assets after performance targets are met, paying about 25% of total project costs estimated at $8 billion to $9 billion [3] - Air Products will own and operate the industrial gases production, supplying 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 [3] CO2 Capture and Sequestration - The facility is expected to 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 [4] NEOM Green Hydrogen Project - The NEOM Green Hydrogen Project in Saudi Arabia is over 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 [5] - A marketing and distribution agreement is expected to be finalized in the first half of 2026, where Yara will sell volumes not sold by Air Products as renewable hydrogen in Europe for a commission [5] Stock Performance - Air Products shares are currently trading 9.36% lower at $236.30 [6]