Air Products once billed its $4.5 billion hydrogen facility in Louisiana as a bold step toward a cleaner energy future. But, as The Wall Street Journal writes, since CEO Seifi Ghasemi first unveiled the project at the Governor’s Mansion in 2021, optimism has faded—and costs have ballooned to $8 billion.
Now under new leadership, the company is tapping the brakes.
The plan was to produce “blue hydrogen” from natural gas, sequester the carbon under Lake Maurepas, and help transition heavy industry and transportation away from fossil fuels. But with demand still elusive, construction is stalled until buyers are secured. That mirrors global headwinds for hydrogen: high costs, limited infrastructure and wavering government support—particularly as Republican leaders push to slash Biden-era tax credits.
From Louisiana to Saudi Arabia’s Neom megaproject and Rotterdam’s port, Air Products is facing pressure to scale back, partner up, or walk away. In Louisiana, that could mean selling off parts of the project to cut exposure by $3 billion. Meanwhile, concerns are rising among environmental groups over the pipeline’s path through wetlands and the lake’s delicate ecosystem.
