In its Q3 2024 results, the DuPont spin-off said a recent review of “third-party industry projections” now reflects “lower-end market demand” as well as “slower market growth through 2030” for hydrogen.

Additionally, Chemours said there was “a more uncertain growth trajectory” beyond 2030 and has reduced its investment plans for its Advanced Performance Materials business, which produces its Nafion™ membrane materials for fuel cells and electrolysers.

In recent weeks, several reports have downgraded hydrogen usage estimates, including McKinsey’s Global Energy Perspective, which cut its projected 2050 hydrogen demand by up to 25%, citing cost increases and regulatory uncertainty.

Read more: McKinsey cuts 2050 hydrogen forecast as costs soar and policy uncertainty grows

The changes and revised financial projections represented an accounting “triggering event” for the business, seeing Chemours re-evaluate the value of its intangible assets, including goodwill (the excess value assigned to the Advanced Performance Materials business due to brand value and expected future earnings).

This re-evaluation led Chemours to record a non-cash impairment charge of $56m, effectively writing down the full value of its goodwill for the segment, indicating that its future profitability may not align with past expectations.

H2 View has reached out to the firm for more information on the specifics and breadth of the investment reduction.

It comes after the Advanced Performance Materials business logged $348m in net sales in Q3 – a 1% increase year-on-year. However, its EBITDA dropped from $68m in Q3 2023 to $39m in 2024.

In 2023, Chemours announced it would invest $200m to increase the manufacturing capacity of its Nafion ion exchange membranes at its Villers-Saint-Paul facility in France.

Read more: Chemours to make $200m investment in France to support growing hydrogen demand

Speaking to H2 View in 2022, Denise Dignam, then president of Advanced Performance Materials at Chemours, said the company was “excited” about its role in the hydrogen economy and its products.

“We are interested because we have an innate responsibility to help create a healthy planet while driving vibrant economies along the journey,” she told H2 View. “Our job is to harness the potential of our chemistry to advance technologies and unleash the power of green hydrogen in a way that not only reduces carbon emissions but also provides affordable energy and greater energy security.”

Dignam was appointed CEO of Chemours in March 2024, after former top executives were placed on administrative leave by the company’s board after it was found that members of senior management had delayed payments to some vendors to aid incentive compensation.

The company is best know for its Teflon non-stick coatings and has previously faced lawsuits for alledgely polluting water sources with PFAS chemicals. In 2023, DuPont, Chemours and Corteva agreed to pay almost $1.2bn to settle liability charges brought by public water systems in the US.