Air Products scraps £2 bn hydrogen terminal project in UK

US-based industrial gases firm Air Products has scrapped its £2 billion green hydrogen terminal project at the Port of Immingham, UK. Despite receiving planning approval in February, the company says that the lack of firm policy support and financial backing from the UK government made the project untenable.

The Immingham Green Energy Terminal would have imported green ammonia from Air Products’ flagship 2.2GW NEOM project in Saudi Arabia and cracked it back into hydrogen. It was also slated to include a 300MW domestic hydrogen production facility.

Combined, the infrastructure would have produced 76,000 tonnes of hydrogen annually, positioning it as one of the UK’s largest clean hydrogen projects.

The project, developed in partnership with Associated British Ports (ABP), was expected to deliver over £4.5 billion in economic value and create 1,400 jobs in the Humber region—one of the UK’s core industrial decarbonisation zones.

Air Products had long indicated that a final investment decision was contingent on stronger government commitment. The company now criticizes both the previous Conservative administration and the incoming Labour government for failing to provide the market certainty or incentives necessary to move forward.

This marks one of the largest hydrogen project withdrawals in the UK to date and raises serious questions about the country’s ability to attract large-scale clean energy investment.

Industry observers say the decision will not only hurt investor confidence but also hamper the UK’s progress toward its 2030 hydrogen production and import targets.