Woodside Power Group has accomplished its acquisition of 100% fairness curiosity in OCI Clear Ammonia Holding B.V., which holds its decrease carbon ammonia undertaking in Texas from OCI N.V.
The all-cash consideration of roughly $2.35 billion is inclusive of capital expenditure by way of completion of the primary section, with 80 p.c paid and the remaining 20 p.c to be paid at completion of the undertaking, Woodside mentioned in a information launch.
The OCI Clear Ammonia undertaking at present stays beneath building in Beaumont, Texas. The undertaking is concentrating on manufacturing of first ammonia in 2025 and decrease carbon ammonia in 2026, Woodside mentioned.
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OCI will handle the development of the undertaking by way of provisional acceptance. It should proceed to handle the development, commissioning, and startup of the ability. The corporate will proceed to direct the contractors till the undertaking is totally staffed and operational, at which level it’ll flip it over to Woodside.
Woodside CEO Meg O’Neill mentioned the transaction has positioned Woodside as an early mover within the rising decrease carbon ammonia market.
“As a world power supplier, Woodside is concentrated on decrease carbon ammonia and its more and more vital position on this planet’s power combine. The potential purposes are in energy technology, marine fuels and as an industrial feedstock, because it displaces higher-emitting fuels,” O’Neill mentioned.
“International ammonia demand is forecast to double by 2050 with decrease carbon ammonia making up almost two-thirds of complete demand. Evolving decarbonization insurance policies have potential to draw a premium worth for decrease carbon ammonia,” she continued. “The transaction will generate returns exceeding our capital allocation framework targets, with section 1 of the Challenge anticipated to be free money move accretive from 2026. It additionally represents a fabric step in the direction of delivering our Scope 3 funding and abatement targets”.
Woodside introduced in August that it had entered into an settlement to accumulate OCI’s Clear Ammonia Challenge. Following the startup of carbon seize and sequestration, the undertaking will generate ammonia with lower than 35 p.c of the lifecycle emissions depth of unabated ammonia, based on the discharge.
OCI Clear Ammonia is the world’s first large-scale, low-carbon depth (CI) hydrogen-based greenfield ammonia facility, based on an earlier assertion. The undertaking is a collaboration between OCI and Linde that integrates Linde’s low-CI hydrogen manufacturing and carbon seize expertise with OCI’s ammonia manufacturing, storage, and transportation infrastructure.
Linde has contracted with ExxonMobil for carbon dioxide (CO2) transportation and sequestration infrastructure. In its first section, the undertaking is anticipated to end result within the seize and sequestration of 1.7 million metric tons per 12 months of CO2.
OCI Clear Ammonia is anticipated to fulfill blue ammonia specs “by any customary introduced so far,” OCI mentioned, including that it’s the solely blue ammonia facility beneath building globally, able to producing 1.1 million metric tons per 12 months of blue ammonia in its first section. The mandatory infrastructure and utilities are in place to double the capability, the corporate added.
To contact the writer, e mail rocky.teodoro@rigzone.com
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