Air Products cancels Louisiana Clean Energy Complex, redirects capital to NEOM ammonia partnership

Air Products has confirmed it will not proceed with the Louisiana Clean Energy Complex (LCEC), a flagship blue hydrogen-to-ammonia project that was expected to be one of the largest low-carbon energy facilities in the United States. The company said the decision will result in a pre-tax charge in its fiscal third quarter, though it did not disclose the amount.

The LCEC cancellation marks a strategic retreat from one of Air Products’ most ambitious clean energy investments. The project had been designed to produce low-carbon hydrogen using natural gas with carbon capture, with most of the hydrogen destined for ammonia production. Air Products and Yara had been in advanced negotiations for a 25-year offtake agreement under which Yara would purchase roughly 80% of the facility’s blue hydrogen to produce approximately 2.8 million metric tons of low-carbon ammonia per year.

CEO Eduardo Menezes said the company is optimizing its project portfolio and expects capital expenditures to fall from approximately $3.5 billion in fiscal 2026 to about $2 billion to $2.5 billion in fiscal 2028. The company also discontinued a zero-carbon liquid hydrogen facility in Arizona and other smaller clean energy distribution projects.

The cancellation comes as Air Products simultaneously finalized its marketing agreement with Yara for renewable ammonia from the NEOM Green Hydrogen Project in Saudi Arabia, signaling a shift in strategy from domestic blue hydrogen toward international green ammonia partnerships.

Source: Air Products / SEC Filing