Air Products Exits Louisiana Clean Energy Project
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 30 2026
0mins
Air Products announced it will not proceed with the Louisiana Clean Energy Complex project. The LCEC project exit and other portfolio actions will result in a pre-tax charge in Air Products' fiscal third quarter. Air Products also announced it is finalizing a marketing and distribution agreement with Yara International ASA for renewable ammonia from the NEOM Green Hydrogen Project in Saudi Arabia. This announcement that Air Products will not move forward with the LCEC is based on expected financial returns not meeting stringent return criteria. Air Products remains committed to growing profitably in Louisiana, where it operates 18 industrial gas facilities across the state and the world's largest hydrogen pipeline network, reliably serving numerous refinery customers along the U.S. Gulf Coast. Air Products will record pre-tax charges not expected to exceed $2.9B (or approximately $2.2B on an after-tax basis) in its fiscal 2026 third quarter, primarily to write down assets and terminate contractual commitments, primarily related to the LCEC project decision. In addition, Air Products will discontinue a zero-carbon liquid hydrogen facility in Casa Grande, Arizona and other smaller scale projects supporting clean energy distribution. These exits are being driven by challenging commercial conditions, project-specific economic factors, and slower-than-expected development in certain markets, largely hydrogen for mobility. The company will maximize the redeployment of certain assets to existing or future projects and work to reduce the exposure of existing contractual agreements. Additional financial information related to these actions will be provided in Air Products' fiscal third quarter earnings release. Estimated contract cancellation and other project cancellation costs are subject to further refinement and may ultimately differ materially from actual costs recorded in the company's fiscal third quarter and beyond.
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Analyst Views on APD
Wall Street analysts forecast APD stock price to fall
15 Analyst Rating
6 Buy
9 Hold
0 Sell
Moderate Buy
Current: 308.860
Low
255.00
Averages
290.13
High
345.00
Current: 308.860
Low
255.00
Averages
290.13
High
345.00
About APD
Air Products and Chemicals, Inc. is an industrial gases company. The Company is focused on serving energy, environmental, and emerging markets. Its base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates clean hydrogen projects supporting the transition to low- and zero-carbon energy in the heavy-duty transportation and industrial sectors. In addition, the Company provides turbomachinery, membrane systems and cryogenic containers globally. The Company has operations in approximately 50 countries. Its industries include aerospace, analytical labs & research/science, automotive, beverages, bioenergy, biotechnology, cement and lime, chemicals, electronics, food, glass and frit, hydrogen energy, medical, metals and materials processing, metals production, medical and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Industry Dynamics Observation: The varied performance within the energy sector may be linked to companies' strategic positioning in renewable versus traditional energy, with investors closely monitoring how these shifts could impact future profitability.
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- Financial Impact: The company anticipates recording pre-tax charges not exceeding $2.9 billion, or approximately $2.2 billion after tax, in FQ3, primarily for asset write-downs and contract terminations, highlighting the significant financial burden of the project.
- Project Adjustments: In addition to the Louisiana project, Air Products will discontinue a zero-carbon liquid hydrogen facility in Casa Grande, Arizona, and other smaller clean energy distribution projects, reflecting challenges in the commercial environment and slower-than-expected market development.
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