Air Products, Allentown, PA, announced that it will exit three U.S.-based projects as part of a strategic review initiated by its newly elected board of directors and chief executive officer. The decision, intended to sharpen the company’s project portfolio and resource allocation, is expected to result in a pre-tax charge of up to $3.1 billion in its fiscal second quarter of 2025. The charge, which covers asset write-downs and the termination of contractual commitments, will not affect the company’s adjusted earnings per share for the fiscal year.
The canceled projects include:
- World Energy Partnership, Paramount, CA: Air Products has terminated its agreement with World Energy for the expansion of a Sustainable Aviation Fuel project, citing challenging commercial conditions and operational concerns.
- Massena, NY Green Hydrogen Facility: The company has canceled plans for a 35 metric ton per day green liquid hydrogen plant, along with associated distribution and dispensing infrastructure. The decision was influenced by recent regulatory changes that rendered hydroelectric power ineligible for the federal Clean Hydrogen Production Tax Credit (45V), as well as slower-than-anticipated hydrogen mobility market growth in the region.
- Carbon Monoxide Project in Texas: A planned carbon monoxide production facility has been canceled due to unfavorable economic conditions.
Air Products also reaffirmed its focus on two major initiatives: the NEOM green hydrogen project in Saudi Arabia, which is nearing 80% completion and targeting green ammonia production by late 2026; and the Louisiana Clean Energy Complex, expected to start operations in 2028. The company is actively seeking equity partners for the Louisiana project to optimize capital deployment, particularly in the ammonia loop and carbon sequestration segments.
