Air Liquide said Friday it expects only two out of six previously awarded hydrogen projects for the U.S. Department of Energy may move forward after President Trump ended funding for clean energy projects.
Air Liquide was selected in 2023 as a partner for six clean hydrogen hubs planned by the Biden administration's DoE, which had planned to allocate $7B for the projects, but Trump has placed holds on billions of dollars in spending, including from the Inflation Reduction Act.
"After meeting with the American teams a few days ago, two of the hubs around hydrogen from natural gas with carbon capture are on top of the list to be pursued," while plans for the other four hubs will depend largely on the new administration's decisions on renewable energy policies, CEO François Jackow said on the company's earnings conference call.
Air Liquide has been a major investor in the U.S. clean energy transition, including a partnership with Exxon Mobil (XOM) to enhance the production of low-carbon hydrogen and ammonia at the oil company's Baytown, Texas, facility; Jackow said that while the project with Exxon was not "absolutely decided yet," the companies are continuing to pursue it, with a final decision expected in this year's H2.
The CEO said Trump's potential tariffs would have "very little impact" on Air Liquide's U.S. business, which makes up roughly a third of its total sales, thanks to local sourcing of materials.
Air Liquide reported its FY 2024 net profit rose to €3.31B (~$3.48B) from €3.08B in the year-earlier quarter, and full-year revenues fell 2% Y/Y to €27.06B, weighed by declining energy prices and a negative currency impact.
Full-year results were in line with consensus but its higher margin outlook - targeting a 200-bp margin increase over two years, ahead of the 140-bp move forecast by a Visible Alpha consensus - indicates the company's margin opportunity is currently underappreciated by investors, Citi analysts say
https://www.msn.com/en-us/money/other/air-liquide-sees-just-two-of-six-u-s-hydrogen-hubs-moving-ahead-after-trump-ends-funding