Saudi Arabia: Air Products signs green ammonia marketing deal with Yara for Neom project

 

Saudi Arabia: Yara International to buy and sell green ammonia of Neom project

Air Products (NYSE: APD) has formalised a marketing and distribution agreement with Yara International ASA (OSE: YAR) to buy and sell green ammonia produced at the 2.2-GW Neom Green Hydrogen project in Saudi Arabia, marking a significant step in the commercialisation of renewable ammonia.

The agreement was disclosed in Air Products’ third-quarter financial results and is expected to strengthen the global supply chain for green ammonia as the Neom project moves closer to completion.

Air Products President and CEO Eduardo Menezes said the partnership establishes “the first fully integrated value chain for renewable ammonia,” connecting production at the Neom facility with Yara’s established global logistics and distribution network.

 

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Speaking during the company’s earnings call, Menezes noted that Yara’s ownership of shipping assets and distribution infrastructure removes the risk of being unable to transport product under the project’s long-term take-or-pay arrangement.

“The price risk sits mostly with us, but Yara is incentivised through a commission scheme to commercialise the product as green as possible,” he said.

The Neom Green Hydrogen project will feature up to 4 GW of combined solar and wind power generation alongside 2.2 GW of electrolysis capacity. Once operational, the facility is expected to produce up to 600 tonnes per day of carbon-free hydrogen, which will be converted into green ammonia for export to international markets.

 

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As of late March, the project was approximately 90% complete.

Air Products is developing the project in partnership with ACWA Power and NEOM. In addition to its role as a project partner, Air Products is the exclusive off-taker of the plant’s green ammonia under a 30-year supply agreement, reinforcing its long-term commitment to expanding the global market for low-carbon hydrogen and ammonia.

Source: https://renewablesnow.com