Woodside Energy announced plans to acquire OCI Global's clean ammonia project in Texas for $2.35 billion. The acquisition aligns with Woodside's strategy to advance its transition towards green energy and gain an early-mover advantage in the lower carbon ammonia market.
The acquisition is timely as global demand for cleaner energy is expected to rise due to climate change. “Global ammonia demand is forecast to double by 2050, with lower carbon ammonia making up nearly two-thirds of total demand,” stated Woodside CEO Meg O'Neill.
Currently under construction, the project aims to start producing ammonia by 2025 and lower carbon ammonia by 2026. Woodside expects the project to be accretive to earnings per share from 2027. OCI will oversee the construction phase of the project, located in the U.S. Gulf Coast, until it becomes fully operational, after which it will be handed over to Woodside.
Phase one of the project will have a capacity of 1.1 million tonnes per annum (Mtpa) and is projected to offset 1.6 Mtpa of CO2 equivalent.
In addition to this acquisition, Woodside recently signed a $1.2 billion deal in July to purchase LNG developer Tellurian and its U.S. Gulf Coast Driftwood project.
