Air Products exits SAF, green hydrogen projects in US
The decision, coming as part of a review initiated by the company’s new board and chief executive, will lead to a pre-tax charge of up to USD 3.1 billion (EUR 2.96bn) in the fiscal 2025 second quarter.
Air Products has ended its agreement with World Energy for a SAF expansion project in Paramount, California, citing challenging commercial aspects. It is now managing its exit from the site.
Air Products has also scrapped plans to build a facility to produce 35 tonnes per day of green liquid hydrogen in Massena, New York, and related distribution and dispensing operations. “The decision to cancel this project is based on recent regulatory developments rendering 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’s statement reads.
In addition, Air Products has axed a project in Texas for the production of carbon monoxide. It does not currently expect to make further material cancellations.
"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 chief executive Eduardo Menezes.
With respect to its two largest projects under execution, Air Products said that the NEOM green hydrogen project in Saudi Arabia is nearing 80% completion. Green ammonia production is slated to start at the end of 2026. The Louisiana Clean Energy Complex, which will produce blue hydrogen, is also progressing.
In November 2024, Air Products pulled out of a green hydrogen joint venture project in Texas.
Air Products exits SAF, green hydrogen projects in US | Hydrogen News | Renewables Now