Air Products will drop expansion and construction plans in California, New York and Texas, including a 35 metric-ton-per-day green liquid hydrogen plant. The move, announced Feb. 24, came just weeks after the company replaced former CEO Seifollah Ghasemi with Eduardo Menezes.
“The decision to exit these three projects will streamline our backlog and focus company resources on projects that drive value for Air Products’ shareholders,” said Menezes.
The company, headquartered in Allentown, Pennsylvania, said it has terminated its agreement with World Energy for a sustainable aviation fuel-expansion project in Paramount, California. The decision to exit reflects challenging commercial aspects surrounding the expansion project and current operations, Air Products noted in a press statement.
The company also canceled plans to construct a green liquid hydrogen facility in Massena, New York, and related liquid hydrogen distribution and dispensing operations.
The decision to cancel this project is based on recent regulatory developments rendering the existing hydroelectric power supply ineligible for the Clean Hydrogen Production Tax Credit (45V) as well as slower than expected development of a hydrogen mobility market in the region, the company said.
Air Products also terminated a carbon monoxide production project in Texas due to unfavorable project economics.
The company said it will continue to evaluate all projects in its backlog but does not currently expect any additional material cancellations going forward.
Air Products said other projects in the U.S. and elsewhere are still ongoing. The company reported it is progressing with its blue hydrogen clean energy complex in Louisiana and is in active discussions with potential equity partners to participate in the ammonia loop and carbon dioxide sequestration to reduce capital for the project. The site is expected to begin operations in 2028.
