Air Products Exits NEOM Clean Energy Stake, Partners with Yara for Offtake

Air Products has announced its withdrawal from a $2.9 billion clean energy megaproject situated in NEOM, the ambitious Saudi Arabian giga-city. This strategic decision was disclosed during the company's Q3 2026 earnings call, where it also revised its full-year earnings per share target upwards.

The exit from the NEOM venture is part of Air Products' broader strategy to de-risk its long-term financial commitments, particularly concerning the offtake of ammonia produced by the project. To this end, the company has established a new partnership with Yara International, a global chemical company, to manage these offtake obligations effectively.

The NEOM clean energy project is a significant component of Saudi Arabia's vision for a sustainable future, aiming to produce green hydrogen and ammonia on a large scale. Air Products had been a key partner in this initiative, which involves substantial investment in state-of-the-art facilities for renewable energy generation and subsequent hydrogen and ammonia production.

This re-evaluation of its involvement allows Air Products to optimise its investment portfolio and reduce exposure to the inherent complexities and long development cycles of such large-scale ventures. The partnership with Yara is expected to provide a more stable framework for the distribution and utilisation of the produced ammonia.

The development underscores the evolving landscape of investment in giga-projects across the Gulf region, where financial and strategic alignments are continuously adjusted to meet market realities and corporate objectives. While Air Products exits its direct stake, its continued involvement through the Yara partnership highlights the critical nature of the project's output.