Woodside Delays Blue Ammonia Production at Beaumont Facility Beyond 2026

Woodside Energy has pushed back the start of blue ammonia production at its Beaumont New Ammonia facility in southeast Texas, with no revised target date announced. The company cited construction delays among third-party suppliers responsible for the autothermal reforming (ATR) infrastructure critical to producing low-carbon hydrogen.

The update came during the 2026 Sustainability Briefing held on March 15, where acting CEO Liz Westcott outlined Woodside's sustainability priorities and long-term strategy.

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Blue ammonia production depends on two upstream systems: ATR units to produce carbon-abated hydrogen, and a carbon capture and storage (CCS) facility operated by ExxonMobil. Linde is also involved, contracted to supply nitrogen and hydrogen to the site while capturing CO2 generated during the hydrogen production process. Both the ATR and CCS components must be operational before Beaumont can transition from gray to blue ammonia output.

Formerly the OCI Clean Ammonia project, the Beaumont facility was acquired by Woodside from OCI Global for $2.35 billion in 2024. It began producing conventional gray ammonia in late 2025 and carries a nameplate capacity of 1.1 million metric tons per year. Blue ammonia production had originally been targeted for the second half of 2026.

Liz Westcott, Acting CEO of Woodside Energy, pointed to the ATR systems as the root cause of the delay.

"In terms of ... the timing for lower-carbon, we have third-party suppliers that are doing the auto thermal reforming (ATR) to create the hydrogen that allows you to be lower-carbon. That also requires CCS, and it's those (ATR) facilities in general ... that (are) running behind schedule from the suppliers," she said.

Despite the setback, Westcott stayed positive on blue ammonia's long-term commercial potential, even as she acknowledged the market is developing more slowly than anticipated. Key demand applications include power generation, marine fuels, and hydrogen carrier uses, with primary target markets in Europe and Asia Pacific.

Conventional gray ammonia, meanwhile, is gaining commercial traction. Westcott noted that leading global customers have already secured long-term offtake agreements at current market prices, with deliveries continuing through 2026. Policy gaps in key import regions, however, are slowing demand for the lower-carbon product.

"It's certainly fair to say customers are slower in wanting to have these [low-carbon] products, whether that be through government policy in their region, Europe, or subsidy schemes in Asia that were expected to support the introduction of lower-carbon ammonia," Westcott said.

Once fully operational in its lower-carbon phase, the Beaumont facility has the potential to roughly double U.S. ammonia exports, positioning the country as a major supplier of lower-carbon energy products to international markets.

About Woodside Energy

Woodside Energy is a global energy company headquartered in Perth, Australia, with operations spanning LNG, oil, and new energy projects across three continents. Its new energy portfolio includes the Louisiana LNG project and the Beaumont New Ammonia facility in Texas, reflecting the company's strategy to expand into lower-carbon fuels and hydrogen-adjacent markets.