U.S. Industrial Gas Company Halts Major Clean Energy Project, Forecasts Up to 4 Trillion Won in Impairment Losses

Air Products & Chemicals, Inc. (APD) has decided not to proceed with its Louisiana Clean Energy Complex (LCEC) project due to insufficient profitability and will also halt its zero-carbon liquid hydrogen facility in Casa Grande, Arizona, along with other small-scale clean energy distribution projects. These portfolio adjustments will result in a pre-tax impairment charge of up to $2.9 billion (approximately KRW 4 trillion) in the third quarter. On an after-tax basis, the charge amounts to about $2.2 billion (roughly KRW 3 trillion). The company is pursuing asset redeployment and reduced contract exposure while finalizing an almost exclusive marketing and distribution agreement with Yara International for the renewable ammonia to be produced by its Saudi NEOM green hydrogen project.

Recently, the company signed a roughly $5 billion agreement with ACWA Power and NEOM to build one of the world’s largest green hydrogen–based ammonia production facilities in Saudi Arabia’s NEOM region, strengthening its supply chains to the Middle East and Europe around major green hydrogen initiatives.

Headquartered in Pennsylvania, Air Products & Chemicals, Inc. is a global industrial gas supplier that provides oxygen, nitrogen, hydrogen, and related equipment to manufacturers in the refining, chemical, electronics, and energy sectors worldwide. The company has been growing its presence in hydrogen supply chains and large-scale green hydrogen projects. The industrial gases industry is an oligopoly dominated by a few global players—such as Linde and Air Liquide—and the energy transition and expansion of the hydrogen economy have highlighted the importance of long-term infrastructure investment and large-project risk management.