NEOM will begin green ammonia production in 2027 © NGHC
Air Products is pressing ahead with talks to sell green ammonia produced at the 2.2GW NEOM green hydrogen project to Yara, as the Middle East conflict potentially makes the molecule competitive with fossil-based ammonia.
CEO Eduardo Menezes told investors during the industrial gas major’s Q2 earnings call that current ammonia price shocks were likely to be a “temporary effect” but could underline calls to disconnect production from natural gas.
Grey ammonia, which is produced using natural gas, has seen prices skyrocket during the conflict, with some analysts suggesting green ammonia fossil-based prices.
“I think prices are getting very close to $1,000 a tonne,” Menezes said, adding it creates some “speculation for projects.” Previous estimates suggested NEOM could produce ammonia at around $700 per tonne.
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