FX.co ★ OCI Global To Sell Clean Ammonia Project To Woodside Energy For $2.35 Bln

OCI Global, a prominent producer and distributor of hydrogen products, announced on Monday a strategic agreement to sell its Clean Ammonia project, currently being developed in Beaumont, Texas, to Woodside Energy Group Ltd (WOPEF.PK, WOPEY.PK, WPL.AX) for a total of $2.35 billion, free from cash and debt obligations.

According to the terms of the deal, Woodside will remit 80% of the purchase price to OCI at the time of closing, anticipated in the latter half of the year, with the remaining balance due upon project completion.

The OCI Clean Ammonia project, set to become the first large-scale, low-carbon-intensity, hydrogen-based greenfield ammonia facility, is scheduled to commence ammonia production in 2025, as per OCI's statement.

Notably, this initiative stands as the sole blue ammonia facility under construction worldwide, with an estimated annual production capacity of 1.1 million metric tons during its initial phase.

OCI Global will retain responsibility for the construction, commissioning, and startup phases of the facility. The company will continue overseeing the contractors until the project attains full operational status, at which point management will transition to Woodside.