Air Liquide expects two US hydrogen projects to go ahead; funding freeze by new govt

French industrial gases firm Air Liquide has said two out of six previously awarded hydrogen projects for the US Department of Energy will be prioritised after US President Donald Trump froze funding on clean energy projects.

Air Liquide was chosen in 2023 as a partner for six clean hydrogen hubs planned by the DOE, which was to allocate US$7 billion for them under the bipartisan infrastructure law signed by former President Joe Biden.

However, Trump has placed holds on tens of billions of dollars in congressionally-approved spending, including those from the bipartisan law and Biden’s Inflation Reduction Act.

CEO François Jackow has said that the future of the other four hubs will be largely dependent on the new administration’s decisions on renewable energy policies.

Air Liquide has been investing big in the US clean energy transition, including a partnership with ExxonMobil to enhance the production of low-carbon hydrogen and ammonia at the oil major’s facility in Baytown, Texas.

Jackow said that while the project with Exxon was not “absolutely decided yet”, both parties continued to work on it, with final decision expected in the second half of 2025.

He also noted that Air Liquide’s US business was not limited to hydrogen. Last year it announced investments related to industrial gas supplies to chipmaker Micron Technology and to LG Chem’s US electric vehicle battery plant.

“It is likely that there will be no major announcements in the next six months in the battery sector,” Jackow said, but added he was “extremely confident” with the customers whose projects the company was already working on.

He said Trump’s potential tariffs would have “very little impact” on Air Liquide’s US business, which makes up around one-third of its total sales, thanks to local sourcing of materials.

Meanwhile, Asia remains a key growth market for Air Liquide, particularly in electronics and industrial gases. The company has signed new contracts with Panasonic in China and Mitsubishi Materials in Japan, while also expanding in semiconductor materials and industrial gas supply.

However, the company flagged pricing weakness in China’s helium market.

Thus, in the US, the company is waiting for clearer guidance from the government, while in Europe, discussions are ongoing around potential subsidies for green hydrogen, including up to 60% of capital spending on projects.