Woodside Energy Group Ltd. has agreed to acquire 100% of OCI Clean Ammonia Holding BV and its blue ammonia plant in Beaumont, Tex., for $2.35 billion, inclusive of capital expenditure through completion of the project’s first phase.
The OCI Clean Ammonia project, currently under construction, is expected to produce ammonia, derived from natural gas, in 2025, targeting conventional ammonia customers. Lower-carbon ammonia production, derived from natural gas paired with carbon sequestration, is targeted for 2026 and will target lower-carbon ammonia customers in Europe and Asia.
OCI will continue to manage the construction, commissioning, and startup of the plant and will continue to direct the contractors until the project is fully staffed and operational, at which point it will handover to Woodside.
Phase 1 has a design capacity of 1.1 million tonnes/year (tpy) and is 70% complete. Engineering is 99% complete, procurement is 84% complete (includes 100% of long-lead items), and all major mechanical equipment has been delivered with installation under way or completed. Phase 1 includes scope to accommodate Phase 2, which could add another 1.1 million tpy of ammonia synthesis subject to final investment decision, expected in 2026.
“This transaction positions Woodside in the growing lower carbon ammonia market,” said Woodside chief executive officer Meg O’Neill, who noted potential applications in power generation, marine fuels, and as industrial feedstock.
“Global ammonia demand is forecast to double by 2050, with lower carbon ammonia making up nearly two-thirds of total demand,” she said as part of an Aug. 5 release.
“Phase 1 has the capacity to abate 1.6 million tpy of CO2-e and with the addition of Phase 2 the project has the capacity to abate 3.2 million tpy CO2-e, over 60% of Woodside’s Scope 3 abatement target,” O’Neill continued.
Agreements for the feedstock and CCS capacity are in place. The nitrogen and lower-carbon hydrogen feedstock will be sourced primarily from Linde. The Linde feedstock plant is currently under construction, targeting completion in early 2026. Ahead of completion, early supply of feedstock will come from multiple suppliers, including Linde, from available capacity in the Gulf Coast.
ExxonMobil is expected to transport and permanently store up to 2.2 million tpy of CO2 from Linde’s hydrogen production plant.
