Woodside has completed the acquisition of 100% of OCI Clean Ammonia Holding B.V., which manages the lower-carbon ammonia project in Texas. This transaction, finalized with OCI N.V. and its affiliates, follows Woodside’s August 5, 2024 announcement of the agreement to acquire OCI’s 1.1 Mtpa Clean Ammonia Project.

Once carbon capture and sequestration operations are initiated, the project is expected to produce ammonia with lifecycle emissions intensity reduced to less than 35% compared to traditional unabated ammonia production. Woodside's CEO, Meg O'Neill, emphasized that this acquisition positions the company as a leader in the burgeoning lower carbon ammonia market. "As a global energy provider, Woodside is committed to lower carbon ammonia and recognizes its critical role in the future energy landscape," O'Neill stated. She highlighted the diverse applications of lower carbon ammonia, which include power generation, marine fuels, and serving as an industrial feedstock, effectively replacing higher-emission fuels.

The global demand for ammonia is anticipated to double by 2050, with lower carbon ammonia expected to account for nearly two-thirds of this demand. As decarbonization policies evolve, there is a strong potential for lower carbon ammonia to command a premium price in the market. O'Neill added that the acquisition is projected to generate returns exceeding the company's capital allocation framework targets, with Phase 1 of the project expected to contribute positively to free cash flow by 2026. Furthermore, it represents a significant step towards achieving Woodside's Scope 3 investment and abatement objectives.

Currently, the project is still under construction, with plans to produce initial ammonia by 2025 and lower carbon ammonia starting in 2026. OCI will oversee the construction process until provisional acceptance is achieved. The total all-cash consideration for this acquisition amounts to approximately $2.35 billion, which includes capital expenditures through the completion of the first phase. Of this total, 80% has already been paid, with the remaining 20% to be settled upon project completion. This strategic acquisition reflects Woodside's commitment to advancing its role in the transition towards a lower carbon future in the ammonia sector.

Woodside Energy Group Ltd is an Australian company engaged in petroleum exploration and production. As the operator of oil and gas production in Australia, Woodside is the country's largest independent company solely focused on oil and gas.

OCI Global is a prominent leader in nitrogen, methanol, and hydrogen, advancing the decarbonization of energy-intensive industries that are essential for shaping, feeding, and fueling the world. The company’s production capacity covers four continents, totaling around 13.5 million metric tons per year of hydrogen-based products, including nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid, and melamine. Headquartered in the Netherlands, OCI is listed on Euronext in Amsterdam.