NEW ORLEANS – Air Products has canceled plans for its proposed $4.5 billion Louisiana Clean Energy Complex in Ascension Parish after determining the project would not meet its investment return criteria, ending a blue hydrogen and carbon capture project that had drawn support from state economic development officials and organized opposition from environmental groups. Air Products expects to record up to $2.9 billion in pretax charges, largely reflecting the costs of abandoning the Louisiana project and other discontinued clean energy initiatives.
Announced in 2021, the project was planned near Burnside in Ascension Parish and was designed to produce blue hydrogen and blue ammonia while capturing and permanently storing carbon dioxide emissions. Intended to help position Louisiana as a hub for hydrogen production and carbon management, the project would have used the blue hydrogen to produce blue ammonia for fertilizer and other industrial applications. State officials said at the time it represented one of Louisiana's largest clean energy investments and projected it would create 170 direct jobs, 413 indirect jobs and more than 2,000 construction jobs.
The project also included plans for pipelines and related infrastructure across Ascension, Livingston, St. James, St. John the Baptist and Tangipahoa parishes, including portions of the Maurepas Swamp Wildlife Management Area. The project also became part of a broader legislative debate over carbon capture and storage in Louisiana, particularly proposals involving Lake Maurepas.
Community Opposition to Air Products Energy Complex
Environmental organizations and local residents opposed the project, raising concerns about carbon dioxide pipelines, industrial emissions and potential impacts on surrounding communities. Supporters, meanwhile, said the project would create jobs and help reduce industrial carbon emissions through carbon capture technology.
Following the announcement, Earthworks described the cancellation as a victory for local residents.
"This outcome is a win for the local communities and highlights the power we have when we stand up to these multi-billion dollar industries with the truth on our side. The project would have threatened the land, water and air quality as well as property values in communities already suffering the disproportionate impact of the petrochemical industry," said Kaitlyn Joshua, Gulf Coast campaigner for Earthworks.
Earthworks said it worked alongside community members, local leaders and partner organizations to oppose the project and argued that Air Products portrayed it as an environmentally beneficial development despite concerns raised by residents and environmental advocates.
"Public accountability is key when corporations like Air Products try to come into communities trying to sell 'solutions' when in reality, they are creating additional dangers and risks to the families who live in the surrounding areas, all for corporate profit. This win sends an important signal to the entire petrochemical industry that their era of unchecked expansion in our communities is over," Joshua said.
Air Products Cites Financial Reasons
Air Products, however, said the decision followed an internal review and did not attribute the cancellation to community opposition. The company said a detailed review determined the project's expected financial returns would not satisfy its investment requirements. It also cited challenging commercial conditions, project-specific economic factors and slower-than-expected development in certain hydrogen markets as reasons for discontinuing the project.
Despite ending the Louisiana project, Air Products said it remains committed to its industrial gas business in the state, where it operates 18 facilities. The company said it will begin winding down activities associated with the Louisiana Clean Energy Complex while completing regulatory and contractual closeout processes.
Air Products also announced it is discontinuing a planned zero-carbon liquid hydrogen project in Arizona and several smaller clean energy projects. Air Products said the decisions reflect "challenging commercial conditions, project-specific economic factors and slower-than-expected development in certain markets, largely hydrogen for mobility."
