Australia's Woodside Energy to buy Texas ammonia project for $2.35 bln (updated)

OCI

05/08/2024 08:01

(Adds details throughout)
       Aug 5 (Reuters) - Australia's Woodside Energy  WDS.AX 
said on Monday it will acquire OCI Global's  OCI.AS  clean
ammonia project in Texas for $2.35 billion.
    "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"
Woodside CEO Meg O’Neill said. 
    The project targets the production of ammonia from 2025 and
lower carbon ammonia from 2026 and will be earnings per share
accretive from 2027, Woodside said. 
    The moves comes as demand for lower carbon ammonia is
expected to grow as firms globally shift towards cleaner forms
of energy due to climate change. 
        The project provides Woodside with an early-mover
advantage in the growing lower carbon ammonia market, Woodside
said.
  

 (Reporting by John Biju in Bengaluru; Editing by Mrigank
Dhaniwala and Sonia Cheema)
 ((John.Biju@thomsonreuters.com;))