25-02-2025
Air Products exits three US based projects
As part of a review initiated by Air Products newly-elected Board of Directors and Chief Executive Officer, the Company today announced its decision to exit three projects in the U.S. As a result, Air Products expects to record a pre-tax charge not to exceed $3.1 billion in its fiscal 2025 second quarter, primarily to write down assets and terminate contractual commitments. The estimated charge, which will not impact adjusted earnings per share for fiscal 2025, relates to the following projects:
- World Energy: Air Products has terminated the agreement with World Energy for the Sustainable Aviation Fuel expansion project in Paramount, California, and is managing its overall exit from the site. The decision to exit reflects challenging commercial aspects surrounding the expansion project and current operations.
- Massena: Air Products has cancelled its plans to construct a 35 metric ton per day facility to produce green liquid hydrogen in Massena, New York, and related liquid hydrogen 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.
- Carbon monoxide project in Texas: Air Products has terminated a project in Texas for the production of carbon monoxide due to unfavorable project economics.
“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 Eduardo Menezes, Chief Executive Officer of Air Products. Estimated contract cancellation and other project cancellation costs are subject to further refinement and may ultimately differ from actual costs recorded in the Company’s fiscal second quarter and beyond. Additional information, including revisions to the Company’s capital expenditures forecast for fiscal 2025, will be provided in Air Products’ fiscal second quarter earnings release. Air Products will continue to evaluate all projects in its backlog but does not currently expect any additional material cancellations going forward. The Company will provide an update on major projects during its next earnings call, but specific to Air Products’ two largest projects under execution:
- The NEOM green hydrogen project in Saudi Arabia is approaching 80 percent completion, with green ammonia production expected to commence at the end of 2026.
- The Louisiana Clean Energy Complex is also progressing, with startup expected in 2028. Air Products is in active discussions with potential equity partners to participate in the ammonia loop and carbon dioxide sequestration to reduce capital outlay for this project.
News Category:
-
TotalEnergies and partners launch 2nd phase of Northern Lights CCS project
TotalEnergies and its partners, Equinor and Shell, announce the Final Investment Decision of the second phase of the Northern Lights development, which will increase ...
27-03-2025
-
Eni and Saipem extend collaboration agreement in biorefining
Eni and Saipem extended the collaboration agreement signed between the two companies in November 2023 to combine their respective skills and specialisations in the industrial ...
27-03-2025
-
BASF and Forestal agreement to advance e-methanol production
BASF and Forestal de Atlántico S.A. have signed an early disclosure agreement aimed at advancing the production of e-methanol through carbon capture solutions. Under ...
26-03-2025
-
New pump energy optimization solution launched to drive cost and carbon savings
Sulzer has today launched the Sulzer Energy Optimization Service, an energy efficiency and carbon reduction service that will create a new best practice standard for ...
25-03-2025
-
Aramco completes acquisition of a 50% stake in Blue Hydrogen Industrial Gases Company
Aramco, one of the world’s leading integrated energy and chemicals companies, and Air Products Qudra (APQ) today announced that Aramco has completed the acquisition ...
24-03-2025
-
thyssenkrupp Uhde secures landmark contract for new nitric acid plant in India
thyssenkrupp Uhde, a major chemical technology solution provider, has been awarded a contract by Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC) for the ...
24-03-2025
-
Alfa Laval wins significant order for advanced filtration plant
A new industrial filtration order is one of the largest ever for world leader in membrane technology: Alfa Laval. The advanced filtration solution will be used in a modern ...
19-03-2025
-
Wison Engineering selected for Green methanol project in Turkey
On March 19, 2025, the FEED contract signing ceremony for the ITC-WasteFuel Ankara Green Methanol Project in Turkey was held at the Shanghai headquarters of Wison Engineering. Mr. ...
19-03-2025
-
CTCI to build LNG storage tanks at Kaohsiung intercontinental terminal
Taiwan’s leading engineering, procurement, and construction services provider CTCI Corporation announced today that it has jointly won a NT$26.6 billion EPC bid with ...
17-03-2025
-
SAMSUNG E&A enters the green hydrogen market with Nel ASA acquisition
SAMSUNG E&A, a total solutions provider for the global energy industry, has announced its full-scale entry into the green hydrogen market with the acquisition of ...
12-03-2025