Air Products and Chemicals terminated development of its $9 billion blue hydrogen facility in Louisiana. The company will record a $2.9 billion write-off following the project's cancellation. Management cited weakening U.S. demand and rising costs as primary reasons for the exit. The firm intends to refocus capital on its core industrial gas business.
This decision marks a significant setback for the burgeoning U.S. blue hydrogen sector. Industrial Info Resources currently tracks over $45 billion in active and proposed domestic hydrogen and ammonia projects. Analysts estimate that two-thirds of these projects now have a low probability of proceeding as planned. The move underscores the severe economic and policy headwinds facing large-scale decarbonization initiatives.