Woodside Energy has announced significant progress on its major growth projects, with the Beaumont New Ammonia Project reaching a key milestone. According to Woodside CEO Meg O'Neill, the Beaumont New Ammonia Project is now 90% complete, and Phase 1 remains on track for startup in the second half of 2025. This development marks a substantial step forward for Woodside in the growing market for lower-carbon ammonia.

"At our Beaumont New Ammonia Project, pre-commissioning activities are expected to commence in the second quarter, with startup targeted for the second half of the year," stated O'Neill. "This value-creating opportunity is set to deliver returns above our capital allocation framework and will position Woodside very competitively in the growing market for lower-carbon ammonia."

The Beaumont New Ammonia Project, located in Beaumont, Texas, is designed to be one of the world's first ammonia plants paired with autothermal reforming (ATR) and a 95% carbon dioxide capture rate. The project's first phase will have a production capacity of 1.1 million tonnes per annum (MTPA) of ammonia. Woodside acquired the project from OCI Global in September 2024 and has been working towards its completion. OCI continues to manage the construction of the project.

The project is important for Woodside as it aims to establish itself as an early mover in the lower-carbon ammonia market. The global demand for ammonia is projected to double by 2050, with lower-carbon ammonia expected to constitute a significant portion of that demand. The Beaumont project is poised to help meet this increasing demand.

A key aspect of the Beaumont project is its focus on producing lower-carbon ammonia. This will be achieved through the use of carbon capture and storage (CCS) technology. ExxonMobil will provide CCS services, capturing the carbon dioxide produced during the ammonia production process. This captured CO2 will then be transported and permanently sequestered. The production of lower-carbon ammonia is conditional on the supply of carbon-abated hydrogen and ExxonMobil's CCS facility becoming operational. Linde will be a key supplier of hydrogen.

Woodside anticipates that the Beaumont New Ammonia Project will generate returns exceeding its capital allocation framework targets. Phase 1 of the project is expected to be free cash flow accretive from 2026. The project also represents a significant contribution to Woodside's Scope 3 emissions reduction targets.

Ammonia has diverse potential applications, including power generation, marine fuels, and as an industrial feedstock, offering a pathway to displace higher-emitting fuels. Woodside's investment in the Beaumont New Ammonia Project aligns with the company's strategy to diversify its energy portfolio and invest in lower-carbon solutions.

In addition to the progress at Beaumont, Woodside also provided an update on the Scarborough Energy Project. O'Neill stated, "Our Scarborough Energy Project is progressing as scheduled towards first LNG cargo in the second half of 2026, with the hull and topsides of the floating production unit being prepared for integration activities."