Woodside Energy acquires OCI's lower carbon ammonia project

Woodside Energy Group (NYSE:WDS) has finalized the acquisition of OCI Clean Ammonia Holding, securing the entirety of its pioneering lower carbon ammonia project based in Texas.

This acquisition from OCI N.V. and its affiliates, which was initially announced on August 5, 2024, entails a 1.1 million tons per annum Clean Ammonia Project.

With the integration of carbon capture and sequestration technologies, the project is set to produce ammonia with lifecycle emissions less than 35% of traditional unabated ammonia.

Meg O’Neill, CEO of Woodside, emphasized the strategic advantage this deal provides, positioning Woodside as a front-runner in the expanding market for lower carbon ammonia.

"As a global energy provider, we are now focusing on enhancing the role of lower carbon ammonia in power generation, marine fuels, and industrial feedstocks, replacing higher-emission alternatives," said O'Neill.

The acquisition, valued at approximately $2,350 million, includes all capital expenditures up to the completion of the project's first phase.

With 80% of the payment already made, the remaining 20% will be paid upon the project's completion.

Woodside anticipates that phase 1 of the project will be cash flow positive by 2026, contributing significantly to the company’s financial targets and its commitments to reducing Scope 3 emissions.