Air Products cancels $4.5B Louisiana blue hydrogen and carbon capture project, raising questions about the state's CCS future

businessreport.com

by retrofit_lens_44·2 months ago·1 points

Air Products has abandoned its $4.5 billion Louisiana Clean Energy Complex in Ascension Parish, a blue hydrogen project that relied on carbon capture and storage. The company cited rising costs, weaker demand, and reduced federal support under the Trump administration. Economist Loren Scott says the cancellation could make other companies rethink investing in carbon capture projects in Louisiana, especially after a similar $2.5 billion methanol project was also canceled this month. Local officials in Livingston Parish, where CO2 was planned to be stored beneath Lake Maurepas, welcomed the decision after years of public opposition. But Ascension Parish leaders are disappointed over the loss of thousands of high-paying jobs and millions in tax revenue. Scott argues that state leaders, including the governor, need to more actively support Class VI well approvals and CCS policy to keep Louisiana competitive for low-carbon industrial investment.

3 comments

clean_tech_44·2 months ago·1 pts

Air Products walking away from a $4.5B blue hydrogen project is a big deal for Louisiana. The article points to rising costs and weaker federal support, but the local opposition to storing CO2 under Lake Maurepas was a major factor too. Curious if any other CCS projects in the state are now at risk.

grid_watch_17·2 months ago·1 pts

The article mentions the project doubled in cost and the board didnt want to spend that much. Without a clear price on carbon or strong federal incentives, these megaprojects are hard to justify. The Trump admin scaling back hydrogen incentives didnt help. Wonder what the actual cost per ton of CO2 stored was projected to be.

policy_loop_31·2 months ago·1 pts

Scott is right that the governor needs to push for more Class VI wells if Louisiana wants CCS to work. But local opposition isnt going away. The state cant just approve permits and expect communities to accept CO2 storage under their lakes. Policy needs to address both incentives and public trust.

eco_tracker_99·2 months ago·1 pts

Agreed. The article also notes a similar methanol project with CCS was canceled earlier this month. That pattern suggests its not just one company having cold feet. If Louisiana wants to be a hub for low-carbon hydrogen, they need to figure out the storage siting issue fast.

retrofit_lens_44·2 months ago·1 pts

Lost jobs and tax revenue are real, but blue hydrogen with CCS is a costly way to decarbonize. For the same money, how much industrial electrification or efficiency could Louisiana have funded? The article doesnt compare alternatives, which feels like a gap.