BY JEFF CHUDZINSKINorth Country This Week

MASSENA -- A green hydrogen facility being built in the town of Massena has been canceled.

The news broke on Feb. 24 as Air Products officials announced the cancellation of the $500 million project that would have employed roughly 100 people.

Air Products officials said they also canceled projects in California and Texas.

The reason for canceling the 35 metric ton per day facility is "based on recent regulatory developments rendering existing hydroelectric power supply ineligible for the Clean Hydrogen Production Tax Credit (45V), as well as slower than expected development of a hydrogen mobility market in the region."

"The decision to exit these three projects will streamline our backlog and focus Company resources on projects that drive value for Air Products' shareholders," said Eduardo Menezes, Chief Executive Officer of Air Products.

Air Products' newly-elected board of directors and chief executive officer recently conducted a review of the numerous projects ongoing, making the decision to cease operations in order to record a pre-tax charge not to exceed $3.1 billion in its fiscal 2025 second quarter, primarily to write down assets and terminate contractual commitments, according to the press release.

"Estimated contract cancellation and other project cancellation costs are subject to further refinement and may ultimately differ from actual costs recorded in the Company's fiscal second quarter and beyond. Additional information, including revisions to the Company's capital expenditures forecast for fiscal 2025, will be provided in Air Products' fiscal second quarter earnings release," officials said in the release.

Massena Town Supervisor Sue Bellor said she and the town board were "very surprised and equally disappointed in the cancellation."

"We (the Town Council) are very surprised and equally disappointed in the cancellation. The team from Air Products certainly did their due diligence with presentations to the community and in meeting with stakeholders. From this positive relationship, we were eager for the new industry and creation of many new jobs. They even got involved with local groups and organizations with generous contributions in sponsorships and scholarships," she said.

Bellor said a recent update with Air Products representative Trip Oliver appeared to go well, however a follow up conversation on the morning of Feb. 25 suggested company officials were concerned with stock valuations.

"Apparently for those who watch the stock market, there was a shareholder disagreement with the director of the company. There are 3 new members who hold seats on the board and the CEO was replaced. In my conversation with Trip this morning, I asked questions about the current site, and he said the company will need to figure that out. He expects it will be sold but could not offer more than that. We will hope for and continue to be open to new industries for Massena," she said.

According to notes provided by Bellor from the Jan. 24 update, Oliver said the site, which encompassed 85 total acres, was cleared with phase I civil foundations installed.

Underground work was also underway, with mechanical bids received.

Buildings were expected to be erected this spring as well.

Air Products was expected to enter the next process in building development, with the liquefier and vacuum both having been manufactured.

EV charging stations were also part of the plan, with installation at the Massena International Airport required to offset the carbon emissions of Air Products' trucks.

Permits had also been approved through the state Department of Environmental Conservation for wastewater drainage.

The New York Power Authority had also conducted a facility study and system impact study, both of which were cleared by NYPA.

The Power Authority had also signed off on the installation of a substation, which would have had 30 to 35 workers on site in the spring, with building construction expected to begin in July. That phase of the project would have brought 150 people to the site.

With the cancellation of the project contracts, it remains to be seen what financial compensation the town and village will receive.

The village of Massena had recently signed off on a final agreement to sell $300,000 worth of water to Air Products each year. Conversations were also ongoing between village officials and Air Products regarding the need to add a redundant main water line, as well as upgrading the pumps at the village water treatment plant as well. Those plans now appear to be permanently on hold, though Department of Public Works Superintendent Marty Miller previously said the upgrades were necessary in the future, regardless if Air Products were involved or not.

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