Announced in 2023, the project aimed to produce 1.2–1.4 million tonnes of low-carbon ammonia annually, capturing and permanently storing about 95% of emissions from production through carbon capture technologies.

However, in a joint statement, the companies said they will shift focus to projects with stronger returns, clearer policy support and greater market potential.

“Yara will continue its ammonia strategy as previously communicated, evaluating and maturing equity investment opportunities in US ammonia to determine the optimal project portfolio,” the clean energy specialist said.

The change in strategies reflects the economics facing blue ammonia, which was trading at around $552/tonne on the US Gulf Coast earlier this year, according to S&P Global.

While the US 45Q credit offers up to $85 per tonne of CO₂ permanently stored or used, policy signals under the Trump administration remain uncertain, making final investment decisions harder to justify.

Nevertheless, BASF and Yara stressed this does not mark an exit from ammonia or low-carbon fuels, but rather a reprioritisation of projects most likely to deliver commercial returns.

The two companies continue to jointly operate an ammonia plant at BASF’s Freeport, Texas site.