February 26, 2025 [SAF Investor]- US-based leading industrial gases company Air Products announced decision to exit three projects in the US including their contract for expansion of World Energy’s sustainable aviation fuel (SAF) project in California.

“Air Products has terminated the agreement with World Energy for the SAF expansion project in Paramount, California, and is managing its overall exit from the site,” said the company in its announcement.

“The decision to exit reflects challenging commercial aspects surrounding the expansion project and current operations.”

“The decision to exit these three projects will streamline our backlog and focus company resources on projects that drive value for Air Products’ shareholders,” said Eduardo Menezes, chief executive officer of Air Products.

Under the expansion plan, Air Products agreed to a multi-billion project to extend its Southern California hydrogen pipeline network to supply hydrogen to the existing World Energy facility and further increase supply reliability for all of Air Products’ hydrogen pipeline network customers in Southern California.

The company planned to construct and own the facilities, including a new hydrogen plant, while also extending the company’s existing Southern California hydrogen pipeline network.

Beyond the SAF plant, the company also announced its exit from planned construction of a 35 metric ton per day facility to produce green liquid hydrogen in Massena, New York, and related liquid hydrogen distribution and dispensing operations.

It also terminated a project in Texas for the production of carbon monoxide due to unfavorable project economics.

In total, this amounts to a $3.1bn write-off for the company.

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