Air Products CEO Downplays CBAM Risk for US Blue Ammonia Project

Air Products CEO Eduardo Menezes has downplayed the potential impact of a suspension of the EU’s Carbon Border Adjustment Mechanism (CBAM) on the company’s multi-billion-dollar blue ammonia project in Louisiana, saying that construction costs remain the primary factor for the project’s viability. The Darrow project, recently revived by Air Products, involves producing blue hydrogen, with Norwegian fertiliser producer Yara expected to offtake 80% of the hydrogen and handle ammonia production. Menezes explained that under the proposed agreement, Air Products would supply hydrogen and nitrogen to Yara, who would take responsibility for ammonia production and associated emissions. Air Products aims to finalize a definitive agreement with Yara and reach a final investment decision by mid-2026. While the EU has recently indicated it may suspend CBAM for fertilisers—a mechanism that imposes a cost on the embedded emissions of imported ammonia and hydrogen—Menezes emphasized that this regulatory development is secondary to controlling construction costs in determining the project’s success.