Air Products on Feb. 24 announced its has terminated its agreement with World Energy for the sustainable aviation fuel (SAF) expansion project in Paramount, California. According to World Energy, current operations at the Paramount facility are not affected. 

Air Products in April 2022 announced it was partnering with World Energy to build a $2 billion expansion project at World Energy’s SAF production and distribution hub in Paramount. The project was expected to boost SAF capacity at the site to 340 MMgy. 

As part of a review initiated by Air Products’ newly elected board of directors and CEO, the company on Feb. 24 announced it would exit three U.S. projects, including the World Energy expansion. According to the announcement, Air Products has terminated the agreement with World Energy and is managing its overall exit from the site. “The decision to exit reflects challenging commercial aspects surrounding the expansion project and current operations,” the company said in its statement. 

“Air Products has a newly-elected board of directors and CEO who have been reviewing their portfolio of projects,” World Energy said in a statement. “World Energy has been well aware of this, and we are fully prepared to work with them to facilitate their exit. We remain committed to producing biofuels, including sustainable aviation fuel (SAF), at the Paramount facility.  The facility is currently producing SAF at its highest rate ever and we hope to continue increasing that output.”

World Energy also confirmed that current operations at the Paramount refinery are not affected. The company’s current focus is on a smooth transition as Air Products exits the project.