OCI Global Sells Clean Ammonia Project to Woodside Energy

OCI Global, a leading global producer and distributor of hydrogen products, has announced the sale of its Clean Ammonia project in Beaumont, Texas, to Woodside Energy Group Ltd. This strategic move is part of OCI's broader efforts to enhance its focus on core competencies while ensuring the project's successful completion and operation under new ownership.

>> RELATED: OCI Global Announces Agreement for the Sale of its Clean Ammonia Project in Beaumont, Texas to Woodside Energy Israel - English USA

Details of the Transaction

Under the terms of the agreement, Woodside will acquire 100% of the equity interests in the OCI Global Clean Ammonia project for USD 2.35 billion on a cash-free, debt-free basis. This significant investment underscores Woodside's commitment to expanding its portfolio in the clean energy sector. The transaction is expected to close in the second half of 2024, subject to customary closing conditions and OCI shareholder approval.

Project Overview

The OCI Clean Ammonia project, under construction since December 2022, is the world's first large-scale, low-carbon intensity hydrogen-based ammonia facility. The project is a collaboration between OCI and Linde, integrating Linde's low CI hydrogen production and carbon capture technology with OCI's ammonia production, storage, and transportation infrastructure. The project is designed to produce 1.1 million metric tonnes of blue ammonia annually in its first phase, with the potential to double its capacity.

Significance of the Project

Nassef Sawiris, Executive Chairman of OCI, expressed pride in the project's development, stating, "We are exceptionally proud to have put in motion on a global scale the first FID'd blue ammonia project, with first production expected in less than a year from now. This pioneering investment will contribute to the global availability of low-carbon intensity ammonia, with significant potential to reduce carbon emissions in hard-to-abate sectors." Sawiris highlighted the project's role in reducing carbon emissions in various industries, including fertilizer, industrial sectors, and new applications in power and shipping.

Future Ownership and Management

Woodside's acquisition of the OCI Global Clean Ammonia project marks a significant milestone in its expansion into clean energy. Ahmed El Hoshy, CEO of OCI, commented on the transition, "We are confident that Woodside, as future owner and operator of OCI Clean Ammonia, will add significant value to this peerless collaboration. We look forward to working closely with the Woodside management team to fully complete the facility in the coming months, and to ensure continuity and successful stewardship through closing and beyond."

>> In Other News: Elemental Advanced Materials Announces Strategic Leadership Changes with Key Appointments

Woodside's Role in the Global Energy Transition

Woodside is renowned for its expertise in the energy sector, particularly in the development of the LNG industry in Australia. The acquisition of OCI Clean Ammonia allows Woodside to leverage its extensive experience in energy production and management to further its mission of providing reliable and affordable energy solutions. This move aligns with Woodside's strategy to diversify its energy portfolio and invest in sustainable and clean energy projects.

Project Completion and Handover

OCI will continue to manage the construction, commissioning, and startup of the facility until it is fully staffed and operational. This includes overseeing the contractors and ensuring that all project milestones are met. Upon completion, Woodside will take over the operation of the facility, bringing its expertise and resources to ensure the project's long-term success.

Economic and Environmental Impact

The OCI Clean Ammonia project is set to make a significant economic and environmental impact. The project will capture and sequester 1.7 million metric tonnes of CO2 annually, preventing it from being released into the atmosphere. This substantial reduction in carbon emissions is expected to benefit various sectors, including fertilizers, industrial applications, power generation, and shipping.

Stakeholder Confidence

The successful sale of the OCI Clean Ammonia project to Woodside has garnered positive reactions from stakeholders. Hassan Badrawi, CFO of OCI, stated, "Reflecting upon our thirty-year track record as an investor, developer, and operator, we are extremely proud of the journey OCI has undertaken thus far, across sectors, across geographies, continuously deploying our DNA into the creation of successful projects." This confidence is shared by investors and industry analysts who see the transaction as a strategic move for both companies.

Future Outlook

The sale of the OCI Clean Ammonia project to Woodside Energy Group Ltd marks a significant step forward in the global clean energy transition. The collaboration between OCI and Woodside exemplifies the industry's commitment to developing sustainable and low-carbon energy solutions. As the project nears completion, the successful handover to Woodside is expected to ensure its long-term viability and contribution to reducing carbon emissions worldwide.

For more information, visit OCI Global and Woodside.