Yara International to Acquire Gulf Coast Ammonia Plant in Texas City for $1.3 Billion

Key Takeaways

• Yara International, through its U.S. subsidiary Yara North America, has agreed to acquire Gulf Coast Ammonia's ammonia production facility in Texas City, Texas from GCA Holdings LLC for $1.3 billion.
• The plant carries an expected nameplate capacity of 1.3 million metric tonnes per annum, with Air Products supplying industrial gases under a long-term agreement; ramp-up to full stable operations is targeted by end of 2026.
• Yara will use its midstream ammonia platform to serve both external customers and internal sourcing needs, strengthening supply reliability across its fertilizer production system and industrial customer base.
• The acquisition brings Yara's total capital expenditure for 2026 to $2.5 billion and implies a pro forma Net Debt/EBITDA of 1.73, which the company says remains within its capital allocation policy limits.
• The deal also extends Yara's collaboration with Air Products, including a previously announced marketing and distribution agreement for renewable ammonia from the NEOM Green Hydrogen plant in Saudi Arabia.

Yara International Expands U.S. Ammonia Footprint with $1.3 Billion Texas City Acquisition

Yara International ASA has agreed to acquire the ammonia production facility operated by Gulf Coast Ammonia in Texas City, Texas. The transaction, valued at $1.3 billion, is being executed through Yara's U.S. subsidiary, Yara North America, Inc., with the seller being GCA Holdings LLC, an entity affiliated with Lotus Infrastructure Partners and MB Energy. The acquisition adds a plant with an expected nameplate capacity of 1.3 million metric tonnes per annum to Yara's global production portfolio.

Svein Tore Holsether, President and Chief Executive Officer of Yara International, outlined the strategic rationale: “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. This addition of world-class U.S. production capacity supports our long term strategy of diversifying our energy exposure, capturing economies of scale, and lowering both fixed costs and capital per tonne. With a century of experience and a proven commitment to safety across our operations, sales, and distribution networks in over 60 countries, Yara will contribute to reliable supply across critical value chains, in the U.S. and beyond,” said Svein Tore Holsether, President and Chief Executive Officer.

Plant Structure and Air Products Partnership

The acquisition covers the ammonia synthesis loop, associated storage infrastructure, and exclusive use of loading facilities. Hydrogen, nitrogen, and other utilities will continue to be supplied by Air Products under a long-term contract. Air Products owns and operates the largest hydrogen pipeline network in the United States, and the arrangement mirrors the model Yara already runs at its Freeport, Texas facility, where a comparable setup has supported strong operational performance over time.

The plant is currently completing commissioning work and is expected to reach full nameplate capacity and stable operations by the end of 2026. Following technical due diligence, Yara concluded the facility has the potential to become one of the most cost-efficient assets in its global portfolio. Production targets are set at nameplate capacity or above.

Yara will channel output through its midstream ammonia platform to supply both external industrial customers and its own internal fertilizer production requirements, deepening the reliability of its supply network across crop nutrition value chains.

Decarbonization Pathway

The GCA structure also opens options for a step-wise transition toward low-carbon ammonia production, subject to regulatory developments and financial viability. The acquisition further extends Yara's collaboration with Air Products, alongside the previously announced marketing and distribution agreement for renewable ammonia from the NEOM Green Hydrogen plant in Saudi Arabia.

Yara International: Financial Impact and Capital Discipline

The $1.3 billion consideration lifts Yara's total capital expenditure for 2026 to $2.5 billion, which the company says falls within the ammonia investment envelope outlined at its Capital Markets Day in January 2026. Pro forma Net Debt/EBITDA, including the dividend payment made in May, rises to 1.73 — within Yara's stated policy limits. The company's medium-to-long-term target capital structure calls for a net debt/EBITDA ratio of 1.5 to 2.0 and a net debt/equity ratio below 0.60.

Yara reiterated its capital allocation framework for 2026 to 2030, targeting average annual capital expenditure of $1.2 billion in real terms. The company noted that while this acquisition brings forward part of its anticipated growth spending, it also accelerates associated cash flows from the new capacity. Further growth investments over the period are expected to be selective and focused on high-return opportunities. J.P. Morgan Securities LLC acted as financial advisor to GCA Holdings in the transaction, which remains subject to customary regulatory approvals for fertilizer and ammonia sector investments.