Air Products Focuses on Construction Costs Amid Uncertainty Over Louisiana Hydrogen Project
Air Products is focusing on rising construction costs as it nears a final investment decision on its 1,700-tonne Louisiana blue hydrogen project, aiming to finalize it later this year. The company reported a 6% year-over-year increase in Q1 fiscal 2026 sales, totaling $3.1 billion, and plans to reduce capital expenditures by about $1 billion. Additionally, Air Products is advancing negotiations for low-emission ammonia deals and intends to deconsolidate its green hydrogen joint venture by mid-2027.
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Air Products is prioritizing rising construction costs over concerns regarding Europe's carbon border levy as it approaches a final investment decision on its 1,700-tonne Louisiana blue hydrogen project. The company aims to finalize its decision later this year after de-risking the project by transferring ammonia production and carbon capture components.
Concurrently, the Gulf Coast Ammonia project is nearing full capacity, with production set to reach 100% in the coming weeks. Air Products reported Q1 fiscal 2026 sales of $3.1 billion, up 6% year-over-year, and adjusted EPS of $3.16, reflecting a 10% increase.
The company plans to reduce capital expenditures by about $1 billion, lowering them to approximately $4 billion for the fiscal year. Additionally, Air Products is in advanced talks with Yara for low-emission ammonia deals and plans to deconsolidate its green hydrogen joint venture with NEOM and ACWA Power by mid-2027.
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