‘Eco-Friendly Hydrogen Mega Project’ Abruptly Halted.. Anticipated Losses of Up to 4 Trillion Won

Air Products & Chemicals, Inc. (NYSE: APD) announced on June 30 that it will fully suspend its Louisiana Clean Energy Complex (LCEC) project due to deteriorating profitability and wind down its carbon-free liquefied hydrogen facility in Casa Grande, Arizona, along with several small-scale clean-energy distribution projects. The company expects to record up to $2.9 billion in pre-tax charges (approximately KRW 4 trillion) in the third quarter. After tax, those charges are estimated at about $2.2 billion (around KRW 3 trillion). At the same time, Air Products is reallocating certain assets and reducing contractual exposures while finalizing an independent marketing and distribution agreement with Yara International for the renewable ammonia produced by the NEOM Green Hydrogen project in Saudi Arabia.

Despite announcing this clean-energy project wind-down, Air Products delivered second-quarter fiscal 2026 results that beat market expectations. Leading brokerage reports have praised the company’s disciplined project selection and capital-allocation approach, even as it recognizes substantial losses. Meanwhile, word that the global distribution deal for NEOM’s renewable ammonia is nearing completion highlights Air Products’ shift from blue hydrogen and carbon-capture investments toward a portfolio centered on green hydrogen and ammonia from renewable sources.

Air Products is a U.S.-based global chemicals and energy company specializing in industrial gases and hydrogen supply. In recent years, it has expanded its energy-transition footprint through major hydrogen and ammonia facility investments. Worldwide, clean-energy projects in hydrogen and ammonia now involve multi-billion- to tens-of-billion-dollar commitments (trillions to tens of trillions of KRW), and changing interest rates, construction costs and regulatory environments are driving frequent profitability reviews and business restructurings.