Air Products has said the ballooning costs and project slip on its planned net-zero hydrogen energy complex in Alberta in Canada, first announced in 2021, is in part down to “self-inflicted” project management failures.
Speaking on the company’s Q2 earnings call today, where the company posted a $1.7bn loss after taking a $3bn write-down on three abandoned projects, new CEO Eduardo Menezes said the “tremendous increase” in capital costs on the project was “unforgivable” and reflected the project hitting some avoidable roadblocks.
“When you have a project that gets out of sequence … you start losing windows [of opportunity] in terms of weather and how to execute the project.
“Then you have very low productivity from contractors, and they are expensive to start with, [and] so you get in this spiral” of problems and delays, he said.
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