Air Products scraps Immingham green hydrogen project in UK

Air Products has scrapped plans to build a large-scale green hydrogen import and production project in the Port of Immingham, UK, blaming a “lack of commitment” by ministers, according to reports.

The Immingham Green Energy Terminal, developed with Associated British Ports (ABP), was set to import green hydrogen from Air Products’ 2.2GW Neom project, and produce its own volumes from a 300MW plant.

Air Products suggested that the new plant would create 1,400 jobs and over £4.5bn in economic value in the Humber region.

The UK Department for Transport approved the plans earlier this year; however, now the US industrial gas major claims that ministers have not offered enough support for the development.

During Air Products’ May earnings call, where it reported a $1.7bn quarterly loss and issued a ‘back to basics’ rallying cry, CEO Eduardo Menezes warned “there were more tough decisions ahead”.

A presentation highlighted $5bn-worth of “underperforming projects” comprising two blue hydrogen projects, in Edmonton and Rotterdam (combined capital expenditure exceeding $4bn), a green hydrogen project in Arizona ($360m), and other energy transition projects ($540m).

In another major development, the flagship joint venture Saudi project NEOM is now to focus on green ammonia project until regulations develop for green hydrogen around 2030.