Facility expected to reach full production by end of 2026
Yara International, a Norwegian fertilizer producer, has agreed to buy an ammonia production facility in Texas City, Texas, for $1.3 billion. The company said Thursday that it will purchase the plant from Gulf Coast Ammonia, a chemical manufacturing company owned by Lotus Infrastructure Partners and MB Energy that is developing the site.
The facility has been under construction since 2020. It will produce liquid ammonia — a chemical widely used in fertilizer — from hydrogen and nitrogen gases, with an annual production capacity of about 1.3 million metric tons. Air Products will supply the industrial gases under a long-term supply agreement, Yara said.
The plant is currently in commissioning and is expected to continue ramping up toward full production and stable operations by the end of 2026, according to the company.
Yara Chief Executive Svein Tore Holsether said the acquisition broadens the company’s manufacturing footprint in the United States.
“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 said.
He added that the addition of U.S. production capacity supports Yara’s long-term strategy of diversifying its energy exposure, capturing economies of scale, and lowering both fixed costs and capital per ton.