Air products pull the plug on Louisiana mega-project
Industrial gas major Air Products has confirmed it is shelving its Louisiana Clean Energy Complex, a large-scale hydrogen and ammonia facility that was designed to use carbon capture technology and would have produced several million tons annually. Despite scrapping this flagship project, the company is not exiting the state altogether it will continue running its existing network of 18 industrial gas plants across Louisiana and remains the operator of the largest hydrogen pipeline system along the US Gulf Coast.
The global ammonia industry is entering a new investment phase, with capital shifting from delayed low-carbon megaprojects towards acquisitions and scalable green developments.
Government incentives, long-term supply agreements and cross-border partnerships are accelerating renewable ammonia capacity in Australia, China and the India–Japan corridor, while strengthening future clean energy trade.
Alongside the cancellation news, Air Products revealed it is close to finalising a commercial partnership with Norwegian fertiliser giant Yara. Under the arrangement, first outlined in December of last year, Yara would take on a commission-based role marketing and distributing renewable ammonia produced at the NEOM project in Saudi Arabia, specifically, volumes not already committed to Air Products’ own hydrogen sales in the European market.
Yara pivots to Texas with gulf coast ammonia purchase
With the Louisiana partnership no longer moving forward, Yara has redirected its investment strategy toward an outright acquisition. The company is buying the Gulf Coast Ammonia production site in Texas City from current owners Lotus Infrastructure and Mabanaft Energy. The facility, a conventional (non-renewable) ammonia plant, has an annual output capacity of 1.3 million tons and is in the final stages of commissioning, with steady operations anticipated before year-end.
Yara’s leadership framed the deal as a move to strengthen supply chain resilience and reduce cost exposure amid an uncertain global energy landscape, while also supporting the company’s broader push to scale up production efficiently and lower per-ton capital costs. The transaction covers the ammonia synthesis unit, storage infrastructure, and dedicated loading access at the site, while hydrogen and nitrogen feedstock will continue to be sourced from Air Products under a long-term supply agreement.
Australia greenlights 50 MW green hydrogen hub in Newcastle
In Australia, mining and explosives company Orica has given the go-ahead for the Hunter Valley Hydrogen Hub, a 50-megawatt electrolysis facility to be constructed next to its existing Kooragang Island ammonia and ammonium nitrate operation near Newcastle. Once operational, the hub is expected to generate close to 4,700 tons of hydrogen annually, covering roughly 7.5 per cent of the site’s gas feedstock needs, and enabling production of around 26,600 tons per year of lower-carbon ammonia. Groundwork is set to begin this year, with production targeted for early 2029.
The project has attracted substantial government backing, including roughly Au$432 million in production incentives awarded last year through Australia’s national Hydrogen Headstart initiative, along with additional support from the New South Wales state government. Orica estimates its own capital spending on the hub, inclusive of public funding, will land between Au$245 million and Au$283 million over the 2026–2029 build period. The facility will draw on recycled water and grid electricity backed by renewable certificates, with Plug Power supplying PEM electrolyser units and engineering firm Kent handling procurement and construction.
Certified green ammonia begins flowing near China’s Bohai Sea
In northeast China, a renewable ammonia facility developed by Guohua (Cangzhou) Integrated Energy has become fully operational near Cangzhou City, announced in 2023. The plant has now received ISCC certification, confirming its hydrogen output meets the EU’s RED III renewable energy standards and that its ammonia qualifies as RFNBO-compliant. The Bohai Sea location positions the project well for export logistics, joining two other renewable ammonia ventures from Energy China and Envision that began operating nearby last year, both aimed at regional export markets and marine fuel bunkering.
Electrolyser equipment for the Cangzhou plant was supplied last year by CRRC Zhuzhou Institute, whose units are built for flexible operation across a wide load range and can be shut down or purged instantly. The manufacturer has indicated plans to further improve grid integration and eventually enable direct coupling with renewable power sources.
India-to-Japan ammonia supply chain secures government backing
A major cross-border ammonia supply arrangement is taking shape between India and Japan. IHI and India’s ACME Group have secured Contracts for Difference funding from the Japanese government to support a renewable ammonia plant under development in Odisha, eastern India. The subsidy program, part of Japan’s broader $1 trillion Green Transformation initiative, is designed to offset the higher production costs of low-carbon ammonia and hydrogen projects.
Under the long-term plan, roughly 405,000 tons of renewable ammonia will be shipped annually from India to Japan, output expected by 2027. The Odisha facility scale up to 1.3 million tons of annual capacity. Separately, ACME has also lined up domestic Indian government support and a supply agreement with the Solar Energy Corporation of India for another renewable ammonia project in the same region.
On the receiving end, a seven-member Japanese industrial consortium including IHI, Kobelco Power Kobe, Sumitomo Chemical, and several other manufacturers is developing an ammonia import terminal at Tomakomai in Hokkaido, expected to be completed by 2030. The site was chosen for its extensive available land and its position as northern Japan’s largest maritime hub.
Source: Ammonia Energy Association
ALCHEMPro News Desk (VK)
