Australia-based global energy company Woodside Energy has announced an agreement to acquire a Texas-based low-carbon ammonia plant from OCI Global for $2.35 billion. The move addresses the industry’s long-term need for cleaner energy solutions. Currently, global demand for ammonia is around 200 million tonnes per annum (Mtpa), of which 80% is used as fertilizer. Woodside predicts that the energy transition will double this demand by 2050. The low-carbon ammonia market is expected to surpass the current total ammonia market, driven by clean energy policies in Europe and Asia, such as the EU ETS and CBAM.
This acquisition supports Woodside’s Scope 3 goals, which include investing $5 billion in new energy products and low-carbon services, and making final investment decisions on energy projects that will reduce total capacity by 5 Mtpa of CO2-e by 2030. The plant under construction in Beaumont, Texas, is expected to begin production in 2025, with a capacity of 1.1 Mtpa in the first phase. Low-carbon ammonia production is planned for 2026, using natural gas and carbon sequestration. Agreements are in place for Linde’s low-carbon nitrogen and hydrogen, as well as ExxonMobil’s carbon capture and storage services. A second phase, doubling capacity, is planned for 2026. The project aims to reduce 1.6 Mtpa of CO2-e emissions in Phase 1, reaching 3.2 Mtpa in Phase 2. Woodside will pay 80% of the purchase price to close and the balance upon completion of the project, with OCI managing construction and start-up until it is fully operational.