Air Products announced it is cancelling its planned Louisiana Clean Energy Complex (LCEC), saying the project no longer meets the company’s required financial return thresholds. The decision is part of a broader review of its clean energy portfolio and will lead to significant one-time charges in the company’s fiscal third quarter.
“Portfolio Actions to Result in Pre-Tax Charges Not Expected to Exceed $2.9 Billion in Fiscal 2026 Third Quarter
Air Products will record pre-tax charges not expected to exceed $2.9 billion (or approximately $2.2 billion on an after-tax basis) in its fiscal 2026 third quarter, primarily to write down assets and terminate contractual commitments, primarily related to the LCEC project decision.”
Air Products is also discontinuing a planned zero-carbon liquid hydrogen facility in Casa Grande, Arizona, along with several smaller clean energy distribution projects.
According to Air Products, the exits reflect challenging market conditions, project-specific economic pressures, and slower-than-expected growth in key hydrogen markets, particularly hydrogen mobility applications. The company said it will seek to redeploy assets from cancelled projects where possible and reduce exposure to existing contractual obligations.
Despite the cancellation, Air Products emphasized its ongoing commitment to Louisiana, where it operates 18 industrial gas facilities and the world’s largest hydrogen pipeline network serving refinery customers along the U.S. Gulf Coast.
Separately, Air Products said it is finalizing a marketing and distribution agreement with Yara International for renewable ammonia produced by the NEOM Green Hydrogen Project in Saudi Arabia, signaling continued focus on selected low-carbon energy opportunities.
