Reports related to this article:
Project(s): View 5 related projects in PECWeb
Plant(s): View 5 related plants in PECWeb
Released November 12, 2025 | SUGAR LAND
en
Written by Will Ploch, Assistant Editor-in-Chief for Industrial Info Resources (Sugar Land, Texas)
Earlier this year, Air Products announced it would exit three U.S.-based clean-energy projects, which resulted in a pre-tax charge of $3.1 billion in second-quarter 2025, "primarily to write down assets and terminate contractual commitments," according to the company. The company expects these changes, along with the completion of several large-scale projects still on the books, will help to reduce its workforce from about 23,000 in 2024 to about 20,000 by the end of 2026.
Among the projects nearing completion are two clean-energy developments: a gas-to-hydrogen unit addition at its industrial gases complex in La Porte, Texas, and a green hydrogen plant in Casa Grande, Arizona. Executives at Air Products said these projects already have customers contracted for much of their output, and the company is focused on commercializing any non-contracted volumes.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can learn more--including capacities, investment values and necessary equipment--from detailed reports on the La Porte and Casa Grande projects.
In a quarterly earnings-related earnings call, executives at Air Products believe the completion or cancellation of such pricey projects will help to bring the company's annual capital expenditure (capex) outlook down from an expected $5.1 billion for 2025 to a roughly $2.5 billion for 2028.
"Air Products is committed to its terrific base industrial-gas business, and our commitment is evidenced by the investment in these two new air-separation units," said Francesco Maione, the president of Air Products' Americas division, when both projects were announced last year. "We can ensure enhanced product reliability to regional customers in that these new units can act as back-ups to each other, as well as for other company facilities producing the same products in neighboring and nearby states."
Subscribers can read detailed reports on the Georgia and North Carolina projects.
Melissa Schaeffer, the chief financial officer of Air Products, noted that of the roughly $4 billion in expected capex for full-year 2026, about $1 billion is expected to go toward industrial gas projects.
By the Numbers
"We have a long-term commitment for almost 50% of the volume with a major customer that depends on us," Menezes said. "So, we need to finish the project and supply the hydrogen to this customer. And we have some additional volume that we are working hard to find other ways to place in the market."
Menezes noted Air Products already has infrastructure in place for the Edmonton project, with two other sites connected to it via pipeline and a third upcoming: "So, we can move the product from these three sites to basically all the refineries that are located in that area." Subscribers can learn more from a detailed project report and plant profile.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects worldwide from Air Products.
Key Takeaways
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Summary
Air Products is winding down its investments in high-profile clean-energy projects, with the company's legacy industrial gas business set to dominate a shrinking capital-expenditure program over the coming years.Massive Capex Cut as Giant Projects Either Pass or Fail
Air Products and Chemicals Incorporated (Allentown, Pennsylvania) is going back to basics. Following a series of big-ticket project cancellations, the company is returning its focus to lower-risk industrial-gas projects with committed offtake and potential for expansion. Industrial Info is tracking more than $4.5 billion worth of active and proposed projects from Air Products globally, including more than $1.5 billion worth in the U.S. and Canada.Earlier this year, Air Products announced it would exit three U.S.-based clean-energy projects, which resulted in a pre-tax charge of $3.1 billion in second-quarter 2025, "primarily to write down assets and terminate contractual commitments," according to the company. The company expects these changes, along with the completion of several large-scale projects still on the books, will help to reduce its workforce from about 23,000 in 2024 to about 20,000 by the end of 2026.
Among the projects nearing completion are two clean-energy developments: a gas-to-hydrogen unit addition at its industrial gases complex in La Porte, Texas, and a green hydrogen plant in Casa Grande, Arizona. Executives at Air Products said these projects already have customers contracted for much of their output, and the company is focused on commercializing any non-contracted volumes.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project and Plant databases can learn more--including capacities, investment values and necessary equipment--from detailed reports on the La Porte and Casa Grande projects.
In a quarterly earnings-related earnings call, executives at Air Products believe the completion or cancellation of such pricey projects will help to bring the company's annual capital expenditure (capex) outlook down from an expected $5.1 billion for 2025 to a roughly $2.5 billion for 2028.
Industrial Gases Return to Center Stage
To improve its core business, Air Products aims to refocus its efforts on its industrial gases business. The company plans to begin work next year on new air-separation units at its plants in Conyers, Georgia, and Reidsville, North Carolina, both of which will replace existing oxygen, nitrogen and argon production units with more efficient models to boost capacity."Air Products is committed to its terrific base industrial-gas business, and our commitment is evidenced by the investment in these two new air-separation units," said Francesco Maione, the president of Air Products' Americas division, when both projects were announced last year. "We can ensure enhanced product reliability to regional customers in that these new units can act as back-ups to each other, as well as for other company facilities producing the same products in neighboring and nearby states."
Subscribers can read detailed reports on the Georgia and North Carolina projects.
Melissa Schaeffer, the chief financial officer of Air Products, noted that of the roughly $4 billion in expected capex for full-year 2026, about $1 billion is expected to go toward industrial gas projects.
By the Numbers
- $3.1 billion: Pre-tax charge in second-quarter 2025 for clean-energy project write-downs
- $5.1 billion to $2.5 billion: Estimated drop in annual capex from 2025 to 2028
- C$1.3 billion to C$3.3 billion: Estimated rise in costs for blue hydrogen project in Edmonton
Execs Back Costly, Long-Delayed Hydrogen Project
One of the company's more troubled projects has been its blue hydrogen complex in Edmonton, Alberta. Announced in 2021 with an estimated cost of C$1.3 billion, the startup date has been pushed back from 2024 to 2027. Nonetheless, Menezes said in the earnings call that the company is standing by the development."We have a long-term commitment for almost 50% of the volume with a major customer that depends on us," Menezes said. "So, we need to finish the project and supply the hydrogen to this customer. And we have some additional volume that we are working hard to find other ways to place in the market."
Menezes noted Air Products already has infrastructure in place for the Edmonton project, with two other sites connected to it via pipeline and a third upcoming: "So, we can move the product from these three sites to basically all the refineries that are located in that area." Subscribers can learn more from a detailed project report and plant profile.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and proposed projects worldwide from Air Products.
Key Takeaways
- Industrial gas projects to dominate Air Products' slate in coming years, with $1 billion of capex expected in 2026.
- Pricey clean-energy projects are winding down, with some nearing completion and others cancelled.
- Company stands by its costly blue hydrogen project in Canada, citing customer commitments.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
