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Air Products to Exit Three U.S.-Based Projects
APDAir Products and Chemicals(APD) Prnewswire·2025-02-24 21:15

Core Viewpoint - Air Products plans to exit three projects in the U.S., resulting in a pre-tax charge not exceeding 3.1billioninitsfiscal2025secondquarter,primarilyforassetwrite−downsandcontractterminations[1][5].Group1:ProjectExits−ThecompanyhasterminateditsagreementwithWorldEnergyfortheSustainableAviationFuelexpansionprojectinParamount,California,duetochallengingcommercialaspects[5].−Planstoconstructa35metrictonperdayfacilityforgreenliquidhydrogeninMassena,NewYork,havebeencanceledduetoregulatorychangesaffectinghydroelectricpowereligibilityfortaxcreditsandslowmarketdevelopment[5].−AcarbonmonoxideproductionprojectinTexashasalsobeenterminatedduetounfavorableprojecteconomics[5].Group2:FinancialImpact−Theestimatedpre−taxchargeofupto3.1 billion in its fiscal 2025 second quarter, primarily for asset write-downs and contract terminations [1][5]. Group 1: Project Exits - The company has terminated its agreement with World Energy for the Sustainable Aviation Fuel expansion project in Paramount, California, due to challenging commercial aspects [5]. - Plans to construct a 35 metric ton per day facility for green liquid hydrogen in Massena, New York, have been canceled due to regulatory changes affecting hydroelectric power eligibility for tax credits and slow market development [5]. - A carbon monoxide production project in Texas has also been terminated due to unfavorable project economics [5]. Group 2: Financial Impact - The estimated pre-tax charge of up to 3.1 billion will not affect adjusted earnings per share for fiscal 2025 [1]. - The company will provide further details on capital expenditures and project costs in its fiscal second quarter earnings release [3]. Group 3: Ongoing Projects - The NEOM green hydrogen project in Saudi Arabia is nearing 80% completion, with green ammonia production expected to start by the end of 2026 [6]. - The Louisiana Clean Energy Complex is progressing, with startup anticipated in 2028, and the company is seeking equity partners for ammonia loop and carbon dioxide sequestration [6]. Group 4: Company Overview - Air Products is a leading industrial gases company with fiscal 2024 sales of 12.1billionandamarketcapitalizationexceeding12.1 billion and a market capitalization exceeding 65 billion [5]. - The company operates in approximately 50 countries and focuses on energy, environmental, and emerging markets, providing essential industrial gases and related expertise [4][5].