BASF and Yara scrap joint project for low-carbon ammonia at US Gulf Coast

BASF and Yara International ASA on Tuesday (26 August) said they have jointly decided to discontinue their project to develop a low-carbon ammonia production facility with carbon capture and storage in the US Gulf Coast region. 

“This decision reflects the companies’ commitment to focus on initiatives with the highest potential to achieve their respective value creation goals,” the companies said in a joint statement. 

“Yara will continue its ammonia strategy as previously communicated, evaluating and maturing equity investment opportunities in US ammonia to determine the optimal project portfolio.”

BASF and Yara are long-standing collaboration partners and continue to jointly operate a world-scale ammonia plant at BASF’s site in Freeport, Texas. 

Additionally, BASF produces ammonia in Ludwigshafen, Germany, and Antwerp, Belgium. Yara operates the world’s largest ammonia system with production facilities in Europe, the Americas and Asia.

In 2023, BASF and Yara Clean Ammonia announced their collaboration on a joint study to develop and construct a world-scale low-carbon blue ammonia production facility with carbon capture in the US Gulf Coast region.

At the time, Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said in line with Yara Clean Ammonia’s strategy, they were working systematically to develop asset-backed supply to decarbonise agriculture as well as serving new clean ammonia segments such as shipping fuel, power production and ammonia as a hydrogen carrier. 

Photo credit: Yara
Published: 27 August, 2025