Air Products and Chemicals (APD) canceled its Louisiana Clean Energy Complex project. The company cited expected financial returns that failed to meet internal criteria.
The industrial gas giant will record pre-tax charges of up to $2.9 billion in its fiscal third quarter. This equates to approximately $2.2 billion after-tax. These charges primarily cover asset write-downs and contract terminations.
Air Products also discontinued a zero-carbon liquid hydrogen facility in Arizona. The company shuttered several smaller clean energy distribution projects as well.
Management attributed the exits to challenging commercial conditions and slow market development for hydrogen mobility. Air Products shares rose 6.8% in pre-market trading following the announcement.