Air Products said it will not move ahead with the Louisiana Clean Energy Complex, a project it had positioned as part of its clean energy buildout, and expects the decision, along with other portfolio actions, to produce a pre-tax charge of up to $2.9 billion in its fiscal third quarter.
The company said the charge will be driven primarily by asset write-downs and the termination of contractual commitments tied to the Louisiana project. It also said it will discontinue a zero-carbon liquid hydrogen facility in Casa Grande, Arizona, plus other smaller clean energy distribution projects.
Air Products said the exit from Louisiana reflects expected financial returns that did not meet its return criteria. The company said it remains active in Louisiana, where it operates 18 industrial gas facilities and what it described as the world’s largest hydrogen pipeline network.
The company estimated the $2.9 billion pre-tax charge would translate to about $2.2 billion after tax. It said the amount could change as contract-cancellation costs are refined.
At the same time, Air Products said it is finalizing a marketing and distribution agreement with Yara International for renewable ammonia from the NEOM green hydrogen project in Saudi Arabia. The company said the arrangement would allow ammonia from what it called the world’s first large-scale renewable ammonia plant to be sold and delivered worldwide through Yara’s supply chain.
Air Products said fiscal 2025 sales were $12.0 billion and that it operates in approximately 50 countries. As a result of these announcements, the company's shares have moved 10.05% on the market, and are now trading at a price of $298.63. For the full picture, make sure to review Air Products & Chemicals's 8-K report.
