Yara International ASA announced that its U.S. subsidiary, Yara North America, Inc., will acquire Gulf Coast Ammonia’s ammonia production facility in Texas City, from GCA Holdings LLC for $1.3 billion. The acquisition marks a significant step in Yara’s strategy to diversify energy exposure, enhance production competitiveness and strengthen its global ammonia supply chain.
A Major Addition to Yara’s Ammonia Portfolio
Yara will take ownership of the ammonia plant, which has an expected nameplate capacity of 1.3 million tons per annum (mtpa). As part of a long-term supply arrangement, Air Products will provide industrial gases, including hydrogen and nitrogen, to support the facility’s operations. Yara plans to use its established midstream ammonia platform to supply both external customers and its own internal fertilizer production network.
Plant Commissioning and Production Ramp-Up
The Texas City facility is currently in the commissioning phase and is expected to continue ramping up toward full production and stable operations by the end of 2026. Importantly, Yara aims to increase output beyond the plant’s nameplate capacity by leveraging its operational expertise in ammonia production. Svein Tore Holsether, President and CEO of Yara International, said the acquisition will improve operational resilience and provide greater flexibility in energy sourcing. “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,” Holsether added. He added that the new U.S. production capacity supports Yara’s long-term strategy of diversifying energy exposure, capturing economies of scale, lowering fixed costs, reducing capital intensity per ton of ammonia produced and strengthening Yara’s Global Competitiveness. The acquisition aligns with Yara’s disciplined investment strategy aimed at improving competitiveness and supporting long-term earnings growth.
Long-Term Partnership with Air Products
The transaction includes the ammonia synthesis loop, ammonia storage facilities and exclusive access to loading infrastructure. Air Products will continue supplying hydrogen, nitrogen and other utilities through a long-term contract. The company operates the largest hydrogen pipeline network in the United States, which provides Yara with increased exposure to Henry Hub-linked natural gas pricing. Yara noted that this operating model resembles its successful setup in Freeport, where similar collaboration has delivered strong operational performance.
Improving Reliability and Efficiency
Following an extensive technical due diligence process, Yara confirmed that the Gulf Coast Ammonia plant has the potential to become one of the most efficient and profitable assets in its global portfolio. Yara will work closely with Air Products to improve plant reliability, optimize performance and increase production efficiency as the facility moves toward stable commercial operations. Beyond conventional ammonia production, the acquisition also creates opportunities for low-carbon ammonia development. As per the press release, Yara and Air Products are expanding their collaboration through the previously announced marketing and distribution agreement for renewable ammonia from the NEOM Green Hydrogen Project in Saudi Arabia. Yara stated that the Gulf Coast facility could provide a flexible, phased pathway toward low-carbon ammonia production, subject to regulatory developments and financial viability.
