Air Products Exits Three U.S. Projects, Expects Up to $3.1 Billion Pre-Tax Charge

Air Products and Chemicals, Inc. announced on February 24, 2025, that it is exiting three projects in the United States as part of a strategic review initiated by its newly elected Board of Directors and Chief Executive Officer. The move is expected to result in a pre-tax charge of no more than $3.1 billion in the fiscal 2025 second quarter, with cash expenditures related to these actions estimated at up to $800 million.

The projects affected by the decision include:

• World Energy – The Company has terminated its agreement with World Energy regarding a sustainable aviation fuel expansion project in Paramount, California. The decision reflects challenging commercial conditions faced by the project.

• Massena – Plans to construct a 35 metric ton per day green liquid hydrogen production facility in Massena, New York, along with associated liquid hydrogen distribution and dispensing operations, have been cancelled. The cancellation comes in light of recent regulatory developments that rendered the existing hydroelectric power supply ineligible for the Clean Hydrogen Production Tax Credit (45V) and slower than anticipated momentum in the regional hydrogen market.

• Carbon Monoxide Project in Texas – The decision to terminate the carbon monoxide production project is based on unfavorable project economics.

According to executives at Air Products, this course of action is aimed at streamlining the Company’s project backlog and redirecting resources toward initiatives that generate long-term value for shareholders. While the estimated cancellation and termination costs could differ once finalized, additional details, including updates to the capital expenditure forecast, will be provided in the Company’s fiscal second quarter earnings release.

Air Products also noted that it is continuing to evaluate its project backlog and does not anticipate further material cancellations at this time. In contrast to these exits, the Company highlighted progress on two of its largest active projects: the NEOM green hydrogen project in Saudi Arabia, which is nearing 80 percent completion with green ammonia production scheduled to begin at the end of 2026, and the Louisiana Clean Energy Complex, expected to start up in 2028.

The announcement was initially disclosed in a press release issued on the same day and includes forward-looking statements based on current management expectations.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Air Products and Chemicals’s 8K filing here.

Air Products and Chemicals Company Profile

Air Products and Chemicals, Inc provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas; and specialty gases for customers in various industries, including refining, chemical, manufacturing, electronics, energy production, medical, food, and metals.