Woodsides (WS.US) acquires low-carbon ammonia project from OCI Global for $2.35bn, seeking first-mover advantage

Woods Hole (WDS.US) said on Monday that it had agreed to buy OCI Global's low-carbon ammonia project in Texas for $2.35bn as it seeks to transition to cleaner energy forms.

The project, which is due to begin construction at the end of 2022 and is expected to come online in 2025, is expected to produce 1.1m tonnes of ammonia in the first phase. OCI Global will manage the construction of the project until it is fully operational, at which point it will be handed over to Woods Hole. The project will use Linde’s (LIN.US) low-carbon intensity hydrogen and carbon capture technology. Linde has also signed a contract with ExxonMobil (XOM.US) to absorb and store the carbon dioxide produced by the project.

Global ammonia demand is expected to double by 2050, with nearly two-thirds of that demand expected to be low-carbon ammonia. Woods Hole said the deal would give it a head start in the clean ammonia market. “The potential applications for low-carbon ammonia include power generation, marine fuel and as an industrial feedstock, as it can replace high-emission fuels,” said Meg O’Neill, the company’s chief executive.