Air Products to Exit Three US-Based Projects
As part of a review initiated by Air Products’ newly-elected board of directors and CEO, the company decided to exit three projects in the US. 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 projects affected by the exit are a sustainable aviation fuel (SAF) facility with World Energy in Paramount, California, a green liquid hydrogen facility in Massena, New York, and a carbon monoxide (CO) project in Texas.
Air Products cited challenging commercial aspects surrounding the expansion project and current operations, recent regulatory developments unfavorable project economics as reasons for the cancellation of these projects.
“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, who succeeded Seifollah (Seifi) Ghasemi as CEO of Air Products on Feb. 7.
Air Products said that it will continue to evaluate all projects in its backlog but does not currently expect any additional material cancellations going forward.
