Global industrial gases group Nippon Sanso Holdings Corporation (NSHD) has written off $173m following the cancellation of a hydrogen production plant in the US.
NSHD’s decision came after a reassessment of the project’s viability. The company concluded that resuming construction, which was already paused, was no longer feasible, leading to the write-down of the plant’s value. The financial hit, however, is not expected to affect any other plans.
While NSHD did not name the project, it is likely to be a proposed hydrogen facility in Mobile, Alabama, planned by its US operating company Matheson Tri-Gas. The plant was expected to produce over 30 million standard cubic feet per day of hydrogen, using renewable hydrocarbon feedstocks such as bio-naphtha and other bio-offgases, to supply a 75,000 barrel per day renewable diesel refinery operated by Texas-based specialty refiner Vertex Energy.
This cancellation follows a wider trend in the industry. Air Products recently cancelled three major US hydrogen projects, resulting in a much bigger $3.1bn write-down. The company cited rising costs, regulatory challenges and concerns about the commercial viability of green hydrogen as reasons for the cancellations.
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