Air Products and Chemicals, Inc. (NYSE: APD) told investors on June 30, 2026 that it is walking away from two of the most-watched clean-hydrogen projects in the United States. In a Current Report on Form 8-K filed with the Securities and Exchange Commission, the company disclosed under Item 2.06 — the material-impairments item — that it would exit the Louisiana Clean Energy Complex, a facility designed to produce low-carbon hydrogen and ammonia, and the Casa Grande Project, a green-hydrogen facility in Arizona, along with "other smaller scale projects supporting clean energy distribution." The document states the decisions were made on June 26, 2026, the earliest event date on the filing.

The dollar figures are the center of the disclosure. The filing states that, as a result of the decisions, the company expects to record a pre-tax charge of up to $2.9 billion, or $2.2 billion on an after-tax basis, in its fiscal 2026 third quarter. According to the 8-K, that charge is primarily to write down assets and terminate contractual commitments. Cash out the door is a separate, smaller number: the company estimates cash expenditures related to the charges will not exceed $925 million, based on contractual terms and commitments, and it adds that it anticipates a lower cash figure once negotiations and settlements with third parties are finalized.

"the Company expects to record a pre-tax charge of up to $2.9 billion, or $2.2 billion on an after-tax basis, in its fiscal 2026 third quarter, primarily to write down assets and terminate contractual commitments."— Air Products and Chemicals, Inc., Form 8-K (Item 2.06), source

The two named projects had followed different technical routes to the same product. The Louisiana Clean Energy Complex was structured around low-carbon, or "blue," hydrogen and ammonia — hydrogen produced from natural gas with the associated carbon captured and sequestered. The Casa Grande Project in Arizona was a green-hydrogen facility, meaning hydrogen made by splitting water with electricity. Both had been positioned as anchor assets in Air Products' multi-year push to become a large-scale merchant supplier of clean hydrogen. The 8-K now records both as being exited in the same quarter.

What the filing says drove the Louisiana decision

The document is specific about the Louisiana project's history. It states that the company had previously disclosed it would not make a final investment decision on the Louisiana Clean Energy Complex unless it determined it could execute a de-risking strategy. Per the filing, that strategy "included signing firm offtake agreements for hydrogen and nitrogen supply and achieving construction and capital costs in line with its return expectations, including divesting ammonia production assets and carbon sequestration elements." In other words, the go/no-go test was tied to locking in buyers and holding the line on build costs.

The filing then states the outcome of that test directly: "After a detailed review, the Company determined that the expected financial returns from the project would not meet its return criteria. As a consequence, the Company determined that it would exit the project." The 8-K attributes the exit to the company's own return criteria rather than to any single external event. It also notes the review was initiated by the company's Board of Directors and Chief Executive Officer.

Casa Grande and the mobility-hydrogen note

For the Arizona facility and the smaller distribution projects, the 8-K gives a different set of stated reasons. It says those exits "were driven by challenging commercial conditions, project-specific economic factors, and slower than expected development in certain markets, largely hydrogen for mobility." That last clause is the one worth pausing on: it ties the Casa Grande decision to demand that has not materialized on schedule in the transport segment — the fuel-cell trucks, buses, and other vehicles that green-hydrogen projects had counted on as offtake. The filing does not quantify that demand shortfall; it states it as a driver.

The company also flags that the numbers could move. The 8-K states that estimated contract-cancellation and other project-cancellation costs "are subject to further refinement and may ultimately differ materially from actual costs recorded in the Company's fiscal 2026 third quarter and beyond." It says updates on the charges and estimated cash expenditures will come in the Quarterly Report on Form 10-Q for the period ending June 30, 2026. For readers tracking this, that 10-Q is where the refined figures — and the split between non-cash write-downs and cash settlement costs — should appear.

The separate Item 7.01 disclosure

The same 8-K carries an Item 7.01 (Regulation FD) section. It states that on June 30, 2026 the company issued a press release announcing the actions described in Item 2.06 and "providing an update on the NEOM Green Hydrogen Project," furnished as Exhibit 99.1. The filing notes that the Item 7.01 information is furnished, not filed, and is not incorporated by reference into other filings — a standard distinction that matters for how the press-release content is treated legally. The impairment details themselves sit in Item 2.06, which is filed. The NEOM project — a large green-hydrogen and ammonia venture in Saudi Arabia in which Air Products holds an interest — is referenced only through that furnished press release in this document, not among the projects being exited under Item 2.06.

Reading the two numbers side by side

The gap between the up-to-$2.9 billion pre-tax charge and the not-to-exceed-$925 million cash estimate is the structural point of an impairment like this. The larger figure is dominated by writing down assets that were already built or committed — capital that has been spent and is now being recognized as impaired on the income statement. The smaller figure is the cash the company expects to actually pay out going forward, chiefly to terminate contractual commitments, and the filing states it expects that to come in lower after settlements. The 8-K presents both as estimates for the fiscal 2026 third quarter, with the after-tax charge stated at $2.2 billion.

What the document does not do is offer a forecast for the company's remaining hydrogen portfolio or characterize the decision beyond the stated return and commercial-condition factors. It records a set of exits, a sized charge, a cash estimate, and the reasons the company gives for each. The refined figures, and any further detail on the terminated contracts, are directed to the forthcoming Form 10-Q for the period ending June 30, 2026.