IN A SECOND major U.S.move in a fortnight Woodside will aquire OCI’s clean ammonia project in Texas.
The US$2.35 billion deal follows on from Woodside’s US$900 million acquisition of Tellurian liquefied natural gas (LNG).
Both deals are part of Woodside’s strategy to transition to clean energy.
Woodside CEO Meg O’Neill said the acquisition of OCI supports Woodside’s strategy to thrive through the energy transition.
“This transaction positions Woodside in the growing lower carbon ammonia market. The potential applications for lower carbon ammonia are in power generation, marine fuels and as an industrial feedstock, as it displaces higher-emitting fuels,” Ms O’Neil said.
“Global ammonia demand is forecast to double by 2050, with lower carbon ammonia making up nearly two-thirds of total demand.”
OCI Clean Ammonia Holding B.V., and its lower carbon ammonia project in Beaumont, Texas is under construction and aims to produce its first ammonia from 2025 and lower carbon ammonia from 2026.
Woodside says producing ammonia from gas in Texas will create only a third of the normal carbon pollution.
A lower carbon economy is an economy that produces lower levels of greenhouse gas emissions relative to today’s economy.
