Air Products has cancelled its £2 billion Immingham green hydrogen terminal due to a lack of UK government policy support and financial backing. The project promised substantial economic and environmental benefits. Its cancellation raises doubts over the UK's ability to attract clean energy investment and achieve its 2030 hydrogen targets.
Air Products, a leading U.S.-based industrial gases company, has officially cancelled its proposed £2 billion green hydrogen terminal at the Port of Immingham in the UK. The company cited the UK government's failure to provide adequate policy certainty and financial backing as the key reasons behind this decision, delivering a major blow to the country's ambitions to establish itself as a global leader in hydrogen energy.
Despite securing planning approval for the Immingham Green Energy Terminal in February, Air Products has now confirmed that it will no longer proceed with the project. The terminal was intended to play a significant role in the UK’s clean energy future. It was designed to import green ammonia from Air Products’ flagship 2.2GW NEOM green hydrogen project in Saudi Arabia, and then “crack” that ammonia back into hydrogen for use across the UK. The plan also included the construction of a 300MW hydrogen production facility at the same site. Combined, the infrastructure was expected to produce around 76,000 tonnes of low-carbon hydrogen annually.
This initiative, developed in collaboration with Associated British Ports (ABP), was projected to deliver approximately £4.5 billion in total economic value and create 1,400 high-quality jobs in the Humber region. As one of the UK’s most critical industrial decarbonisation zones, the Humber stood to benefit significantly from the project in terms of both job creation and emission reductions.
Air Products had consistently stated that making a final investment decision (FID) would depend on receiving stronger support from the UK government. However, the company expressed frustration with both the previous Conservative-led administration and the newly elected Labour government for failing to deliver the kind of policy certainty, financial incentives, and market frameworks necessary to move such a large-scale clean energy investment forward.
Industry experts describe the cancellation as one of the most significant setbacks to the UK’s hydrogen sector in recent years. The withdrawal raises serious questions about the government’s commitment to its own climate and energy targets, especially those tied to hydrogen production and importation by 2030. The UK had envisioned becoming a major player in the global hydrogen economy, but this latest development may deter other investors considering similar projects.
Observers warn that without clear and actionable policy frameworks, the UK risks losing its competitive edge in attracting clean energy capital and technology. The termination of the Immingham project not only weakens momentum in the hydrogen sector but could also undermine broader efforts to transition the UK economy toward net-zero emissions.
