Woodside to buy US clean ammonia project for $2.35 billion

BEAUMONT, August 7, 2024 – Woodside Energy will acquire a clean ammonia project company in Texas for USD 2.35 billion, the Australian company said on Wednesday.

The company will buy OCI Clean Ammonia Holding from OCI Global in an all-cash transaction.

The project is under construction and targets first production of ammonia in 2025 and lower-carbon ammonia starting from 2026.

Production of 1.1 million tonnes per year is targeted in the first phase.

“Global ammonia demand is forecast to double by 2050, with lower carbon ammonia making up nearly two-thirds of total demand,” Woodside CEO Meg O’Neill said.

“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, as it displaces higher-emitting fuels.”

Dutch player OCI Global is a producer of nitrogen, methanol, and hydrogen with operations on four continents. News of the sale sent the company’s stocks up almost 11% as trading opened in Amsterdam, Bloomberg reported.

Photo courtesy of OCI Global.

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