Air Products halts major North American hydrogen project amid strict regulations
- Air Products has expressed support for strict eligibility requirements for hydrogen production tax credits.
- The company has paused a significant investment project in North America while focusing on a facility in Saudi Arabia.
- Critics argue this may hinder domestic hydrogen production efforts and reflect a prioritization of industry influence over environmental commitment.
In the United States, after the Biden-Harris administration introduced stringent eco-friendly eligibility standards for a $100 billion hydrogen production tax credit, Air Products, a key energy corporation based in Pennsylvania, expressed support for these rules. The company's CEO, Seifi Ghasemi, claimed that such regulations would promote emissions reductions and encourage investments in the sector. However, simultaneously, Air Products focused on a substantial $8.5 billion green hydrogen facility under construction in Saudi Arabia, pausing its largest North American project in Texas. This decision raises concerns about the future of domestic hydrogen production as the company only has a small facility in Arizona eligible for tax credits. The administration's approach has drawn criticism as it appears to lack a commitment to fostering local investment, particularly with an upcoming election.