Woodside Energy (ASX:WDS) has finalised its U$S2.4 billion ($3.6 billion) acquisition of a lower-carbon ammonia plant in Texas, marking a significant step for the Perth-based oil and gas giant in expanding its new energy portfolio.
The deal, announced in early August, involved the purchase of the Beaumont facility from Dutch fertiliser manufacturer OCI Global.
Once operational in 2025, the plant is expected to produce 1.1 million tonnes of ammonia annually, with emissions around two-thirds lower than conventional plants due to the integration of carbon capture and storage technologies.
Woodside CEO Meg O'Neill highlighted the strategic importance of the acquisition, stating it positions the company as an early mover in the lower-carbon ammonia market, which is expected to play a growing role in the global energy mix.
"As a global energy provider, Woodside is focused on lower-carbon ammonia and its increasingly important role in power generation, marine fuels, and industrial applications," O'Neill said.
Global demand for ammonia is forecasted to double by 2050, with lower-carbon variants projected to make up nearly two-thirds of the market.
The Beaumont plant is expected to benefit from evolving decarbonisation policies, potentially attracting premium pricing.
The acquisition is part of Woodside's broader strategy to invest $5 billion in new energy projects and cut emissions by 5 million tonnes annually by 2030.
The company recently invested US$900 million ($1.3 billion) to acquire Tellurian's Driftwood LNG Project, reflecting Woodside's increased focus on North American investments amidst concerns about the Australian market's investment climate.