Air Products Announces Exit From Three U.S. Projects

Air Products and Chemicals

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(RTTNews) - Air Products (APD) announced its decision to exit three U.S. projects as part of a review by its newly-elected Board of Directors and CEO. This will result in a pre-tax charge of up to $3.1 billion in fiscal second quarter of 2025, primarily for asset write-downs and contract terminations. The affected projects include:

World Energy SAF Expansion - California: Agreement terminated due to commercial challenges.

Massena Green Hydrogen Facility - New York: Project canceled due to regulatory changes affecting tax credits and slower hydrogen market growth.

Carbon Monoxide Project - Texas: Terminated due to unfavorable economics.

The company will refine cost estimates and update its capital expenditure forecast in its fiscal second quarter earnings release. Air Products does not anticipate further material project cancellations.

Meanwhile, its NEOM Green Hydrogen Project - Saudi Arabia is nearing 80 percent completion, with production expected by late 2026. The Louisiana Clean Energy Complex remains on track for a 2028 startup, with discussions ongoing for equity partnerships.

Monday, APD closed at $309.39, down 0.16%, and ended aftermarket trading at $310.29, up 0.29%, on the NYSE.