NEW YORK — Shares of Air Products and Chemicals Inc. surged more than 9 percent Tuesday as the industrial gases company announced it would not proceed with its Louisiana Clean Energy Project, freeing capital for other strategic priorities and signaling a shift in project focus.

The move sent the stock to around $296.58 in morning trading, reflecting investor approval of a more disciplined approach to capital allocation amid evolving energy market conditions. Air Products, a major supplier of hydrogen, oxygen and other industrial gases, has been navigating complex decisions around large-scale clean energy initiatives.

The Louisiana project, which involved blue hydrogen production and carbon capture, faced challenges including cost pressures and market dynamics. By stepping back, the company aims to redirect resources toward higher-return opportunities in its core industrial gases business and select growth projects.

Air Products maintains a strong global footprint with operations spanning atmospheric gases, process gases and specialty chemicals. Its business model benefits from long-term contracts with refineries, chemical plants and electronics manufacturers, providing stable cash flows.

The decision on Louisiana aligns with broader industry trends where some clean hydrogen projects have encountered delays due to permitting, infrastructure needs and economic viability. Air Products emphasized its commitment to the energy transition while prioritizing financial........

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