• Acquires 100% of OCI Clean Ammonia Holding B.V. in Texas
• First ammonia production in 2025, lower carbon ammonia in 2026
• Supports energy transition with significant CO2 abatement capacity

Woodside Acquires OCI Clean Ammonia Project

Woodside announced the acquisition of OCI Clean Ammonia Holding B.V. and its low carbon ammonia project in Beaumont, Texas, for $2.35 billion. The project, under construction, is set to produce ammonia by 2025 and lower carbon ammonia by 2026.

“This transaction positions Woodside in the growing lower carbon ammonia market. The potential applications for lower carbon ammonia are in power generation, marine fuels, and as an industrial feedstock, displacing higher-emitting fuels,” said Woodside CEO Meg O’Neill.

The project includes the world’s first ammonia plant with auto thermal reforming and over 95% CO2 capture, providing Woodside an early-mover advantage in the lower carbon ammonia market. Phase 1 targets production of 1.1 million tonnes per annum (Mtpa) with plans to expand in Phase 2.

“This project exceeds our capital allocation framework targets for new energy projects,” O’Neill noted. Phase 1 is expected to achieve an internal rate of return (IRR) above 10% and a payback period of less than 10 years. The acquisition is projected to be free cash flow accretive from 2026 and earnings per share accretive from 2027.

The facility, at full development, can abate 3.2 Mtpa of CO2-e, contributing significantly to Woodside’s Scope 3 abatement targets. “Phase 1 has the capacity to abate 1.6 Mtpa of CO2-e, with Phase 2 further enhancing this capability,” added O’Neill.

Situated on the US Gulf Coast, the project benefits from access to multiple feedstock sources and a deepwater port for export. Agreements for feedstock and carbon capture and storage (CCS) capacity are in place, with ExxonMobil providing CCS services expected to be operational by 2026.

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The project design includes provisions for a second production train, with Phase 2 targeting final investment decision readiness by 2026 and an estimated additional capital expenditure of $1.2-$1.4 billion.

Global ammonia demand is expected to double by 2050, with lower carbon ammonia comprising nearly two-thirds of this growth. “This acquisition is a material step towards delivering our Scope 3 investment and abatement targets,” O’Neill concluded.