Air Products cancels Louisiana blue hydrogen project

Air Products and Yara have cancelled the Louisiana Clean Energy Complex (LCEC), a massive blue hydrogen and blue ammonia project planned for Ascension Parish. The project, also known as the Darrow Project, was originally announced in 2021 with plans to produce approximately 600,000 metric tons of hydrogen per year using natural gas.

The facility intended to capture 95% of the carbon dioxide emissions, totaling about 5 million metric tonnes per annum, to be transported via pipeline for sequestration under Lake Maurepas. The cancellation follows significant public opposition regarding the safety of CO2 storage and pipeline risks, as well as broader financial uncertainties facing carbon capture and storage (CCS) projects.

Industry analysts note that the viability of such projects depends on low natural gas prices, generous production-side subsidies like the 45Q tax credit, firm long-term offtake contracts, and demand-side incentives. The cancellation highlights the economic and regulatory hurdles facing large-scale hydrogen initiatives in the United States.