1.3 Billion Dollar Deal Yara to Take Over Gulf Coast Ammonia’s Production Facility

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Yara International has plans to acquire Gulf Coast Ammonia’s ammonia production facility in Texas, USA for 1.3 billion dollars. The move is in line with Yara’s strategy of diversifying its energy exposure and enhancing the competitiveness of its global ammonia production footprint.

Oslo/Norway – Yara International has recently announced that its U.S. subsidiary, Yara North America, has reached an agreement to acquire Gulf Coast Ammonia’s (GCA) ammonia production facility in Texas City, Texas from GCA Holdings, affiliated with Lotus Infrastructure Partners and MB Energy for a consideration of 1.3 billion dollars.

Key Highlights

• The acquisition demonstrates execution of Yara’s strategy to diversify its energy exposure and enhance the competitiveness of its global ammonia production footprint.

• Yara will own the ammonia plant with an expected nameplate capacity of 1.3 mtpa, with Air Products supplying the industrial gases to Yara as part of a long-term supply agreement.

• Yara will utilize its midstream ammonia platform to supply both external customers and its own internal sourcing needs.

• The plant is currently in commissioning and is anticipated to continue ramping up toward full production and stable operations by end of 2026, with production targeted at above nameplate capacity.

• Yara sees investing in the U.S. as highly attractive, reinforcing its long-time presence as a reliable provider of crop nutrition solutions and producer of ammonia.

“By bringing this plant into the Yara portfolio, we are strengthening our operational resilience and diversifying our energy costs at a time when supply flexibility matters more than ever. This addition of world-class U.S. production capacity supports our long-term strategy of diversifying our energy exposure, capturing economies of scale, and lowering both fixed costs and capital per tonne. With a century of experience and a proven commitment to safety across our operations, sales, and distribution networks in over 60 countries, Yara will contribute to reliable supply across critical value chains, in the U.S. and beyond,” said Svein Tore Holsether, President and Chief Executive Officer.

Strengthening Yara’s competitiveness

The acquisition demonstrates execution of Yara’s strategy to diversify its energy exposure through value-accretive, disciplined investments that improve competitiveness and support long-term earnings expansion.

Yara will utilize its midstream ammonia platform to supply both external customers, and its own internal sourcing needs. This further strengthens Yara’s ability to serve its fertilizer production system and key industrial customers with reliable ammonia supply.

The acquisition includes the ammonia synthesis loop and related ammonia storage and exclusive use of loading infrastructure. Hydrogen and nitrogen supply, along with other utilities, are supplied through a long-term contract with Air Products, which owns and operates the largest hydrogen pipeline network in the United States. This contributes to Yara’s strategic priority of gas diversification, with a significant increase of U.S. gas exposure (Henry Hub). The set-up is similar to Yara’s operations in Freeport, Texas, where a comparable model combined with Yara’s ammonia expertise has supported strong operational improvements and consistently high performance.

The plant is completing outstanding work toward a gradual ramp-up to its 1.3 million metric ton nameplate capacity and stable operations, currently anticipated by the end of 2026. Yara brings a century of experience in ammonia production to this acquisition and will work together with Air Products to improve plant reliability and performance, targeting production to or beyond nameplate capacity. Following a comprehensive technical due diligence, Yara confirmed the GCA plant’s potential to become one of the most efficient and profitable assets in the global portfolio, strengthening Yara’s position on the global ammonia cost curve.

Yara’s flexible system enables multiple pathways for profitable decarbonization. Yara and Air Products extend their collaboration through this acquisition, and through finalizing the previously announced marketing and distribution agreement for renewable ammonia from the Neom Green Hydrogen plant in Saudia Arabia. In addition, the set up in GCA presents opportunities for a flexible, step-wise entry to low-carbon ammonia, subject to regulatory development and financial viability.

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