Air Products has decided to abandon its $4.5 billion green hydrogen joint venture project in Texas, selling the development rights to its partner, The AES Corporation.
The project, first announced in late 2022, never reached a final investment decision (FID). According to Air Products, the initiative did not meet its established guidelines for new, low-carbon projects.
The company's CEO, Seifi Ghasemi, explained that the project failed to align with their criteria, which include having an anchor customer and achieving 75% capacity utilization in existing facilities before committing to FID.
Additionally, Air Products has put a sustainable aviation fuel (SAF) project in California on hold until necessary permits are obtained.
Despite these setbacks, the company is moving forward with several other hydrogen initiatives, including the Neom green hydrogen project in Saudi Arabia, the Canada Net-Zero Hydrogen Energy Project, and a blue hydrogen project in Louisiana, which is currently awaiting permits.
While the hydrogen market has seen some positive developments, Air Products' decision highlights the challenges the sector faces, with slower-than-expected growth contributing to some project cancellations.
