Woodside Energy (NYSE:WDS) has successfully produced its first batch of ammonia at the Beaumont New Ammonia (BNA) facility in southeast Texas, marking the start of operations for one of the largest clean-energy infrastructure projects on the U.S. Gulf Coast.
The milestone, announced Monday, concludes the initial systems testing phase for the 1.1 million tonnes-per-annum facility.
The project, which Woodside acquired from OCI Global for $2.35 billion in September 2024, is now entering a critical verification and performance-testing period.
Following a formal handover from OCI in early 2026, the plant will transition to full commercial production, targeting high-growth markets in Europe and Asia where ammonia is increasingly favored as a hydrogen carrier and zero-carbon maritime fuel.
The BNA facility is designed to be a "capital-light" heavyweight in the emerging hydrogen economy.
Rather than building dedicated hydrogen and nitrogen units, the plant sources feedstock under contract from partners including Linde, which will eventually supply lower-carbon hydrogen abated by ExxonMobil’s carbon capture and storage (CCS) network.
Woodside has already finalized supply agreements with global industrial customers for conventional ammonia produced at the site, with deliveries slated to begin later in 2026.
However, the true value proposition lies in the second half of 2026, when the facility is scheduled to begin producing lower-carbon "blue" ammonia.
For Woodside, the Beaumont project represents a decisive pivot beyond its traditional liquefied natural gas (LNG) base.
The facility’s design also allows for future scalability.
Common infrastructure is already in place for a potential second production train of equal size, with a final investment decision (FID) on that expansion targeted for 2026.