Yara, the Norwegian fertiliser producer, announced that a subsidiary has struck a definitive agreement to purchase Gulf Coast Ammonia’s production facility in Texas from GCA Holdings LLC for $1.3 billion.
The transaction follows Yara's decision in June not to progress with its previously planned purchase of ammonia assets at the Louisiana Clean Energy Complex from Air Products. Instead of acquiring those assets, Yara will now take ownership of the Texas facility, while Air Products will remain connected to the operation by supplying industrial gases under a long-term supply agreement.
Yara said the Texas plant carries an expected nameplate capacity of 1.3 million tonnes per year. The facility is currently in a commissioning phase, and the company expects continued ramping toward full production and stable operations by the end of 2026. Management has indicated a production target above the stated nameplate capacity once the ramp-up is complete.
The acquisition affects Yara's near-term capital plan. The company said the purchase increases its total capital expenditure for 2026 to $2.5 billion.
Ammonia remains a central input in fertiliser manufacturing, and the addition of this production asset represents a material shift in Yara’s asset base and operational footprint.
Context and next steps
The facility is currently completing commissioning activities and is expected to continue ramping through 2026 toward stable operations. Under the new ownership structure, Air Products will supply industrial gases to the plant under a long-term agreement, but Yara will hold title to the asset.
Financial impact
Yara has quantified the change to its capital plan, raising the group's 2026 capital expenditure forecast to $2.5 billion as a result of the deal.
What this means
- Yara expands its production footprint with a $1.3 billion purchase of the Gulf Coast Ammonia facility in Texas.
- The plant is in commissioning and has a nameplate capacity of 1.3 million tonnes per year, with management targeting higher output once ramp-up is complete.
- Air Products will provide industrial gases under a long-term supply agreement despite Yara taking ownership of the asset.