Air Products (NYSE: APD) announced it will not proceed with the Louisiana Clean Energy Complex (LCEC) project, citing expected financial returns that did not meet the company's return criteria. The decision will result in pre-tax charges not expected to exceed $2.9 billion, or approximately $2.2 billion on an after-tax basis, in its fiscal third quarter of 2026.

The charges relate primarily to asset write-downs and termination of contractual commitments tied to the LCEC project. Air Products will also discontinue a zero-carbon liquid hydrogen facility in Casa Grande, Arizona, along with other smaller clean energy distribution projects. The company attributed those additional exits to challenging commercial conditions, project-specific economic factors, and slower-than-expected market development, particularly in hydrogen for mobility.

Air Products said it will work to redeploy certain assets to existing or future projects and seek to reduce exposure under existing contractual agreements. The company noted that estimated cancellation costs are subject to further refinement and may differ materially from actual costs recorded in the fiscal third quarter and beyond.

Separately, Air Products announced it is finalizing a marketing and distribution agreement with Yara International ASA (OSE: YAR) for renewable ammonia produced at the NEOM Green Hydrogen Project in Saudi Arabia. Under the agreement, Yara would sell and deliver the ammonia worldwide through its global supply chain. The company stated this agreement is independent of the LCEC decision.

Air Products said it continues to operate 18 industrial gas facilities in Louisiana and maintains what it describes as the world's largest hydrogen pipeline network along the U.S. Gulf Coast. Additional financial details related to the portfolio actions are expected in the company's fiscal third quarter earnings release.