UPDATE 1-Air Products to exit Louisiana clean energy project; flags $2.9 billion hit

Air Products and Chemicals, Inc.

Air Products and Chemicals, Inc.

APD

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June 30 (Reuters) - Air Products APD.N has terminated its Louisiana Clean Energy Complex project and said it would record up to $2.9 billion in pre-tax charges in the third quarter.

The industrial gases maker said on Tuesday the project did not meet its "stringent return criteria" and the charges primarily were to write down assets and terminate contractual commitments.

The company's shares were up 6.1% in premarket trading.

Air Products will also discontinue a zero-carbon liquid hydrogen facility in Casa Grande, Arizona, and other smaller-scale projects supporting clean energy distribution.

The exits were driven by challenging commercial conditions, project-specific economic factors, and slower-than-expected development in certain markets, largely hydrogen for mobility, the company said.

Air Products also said it was finalizing a marketing and distribution agreement with Yara International ASA YAR.OL for renewable ammonia from the NEOM Green Hydrogen Project in Saudi Arabia.



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