OCI Global sells planned Gulf Coast blue ammonia project to Woodside
Dutch ammonia producer OCI Global has sold its 1.1 million mt/year ammonia project, currently under construction in Beaumont, Texas, to the Australian energy firm Woodside for $2.35 billion.
PHOTO: Construction of ammonia plant underway in Beaumont, Texas on the US Gulf Coast. OCI Global
“OCI will continue to manage the construction, commissioning, and startup of the facility through provisional acceptance,” the company said in a statement.
The facility will start producing grey ammonia in 2025, followed by blue ammonia in 2026. The commencement of blue ammonia production is contingent on the availability of “carbon-abated” hydrogen and the operational status of ExxonMobil’s carbon capture facility, the company noted.
Carbon-abated or blue hydrogen is produced from natural gas via steam methane reforming, with carbon dioxide (CO2) emissions captured during production.
Last February, OCI Global signed a long-term agreement with the German chemical giant Linde to source blue hydrogen and nitrogen for blue ammonia production at its facility. Linde will build, own and operate an on-site plant to supply these feedstocks.
ExxonMobil will capture up to 2.2 million mt/year of CO2 from Linde’s hydrogen plant for permanent storage underground.
OCI Global's chief executive Ahmed El-Hoshy said in February that the company intends to supply blue ammonia produced at its US Gulf Coast facility both domestically and internationally to decarbonise shipping and other sectors. However, following the takeover, neither Woodside nor OCI Global has confirmed whether this allocation to shipping will proceed as initially indicated.
The deal is valued at around $2.35 billion on a cash-free, debt-free basis, and the transaction will be completed upon the project's completion.
OCI offloads methanol business
OCI Global recently sold its methanol business to Methanex. The deal included OCI’s 910,000 mt/year methanol plant and a 340,000 mt/year ammonia facility in Beaumont, Texas.
The transaction also included OCI HyFuels, which produces and supplies bio-methanol for bunkering. OCI Hyfuels currently has a bio-methanol production capacity of up to 220,000 mt/year.
Methanex has not yet specified whether any methanol from the acquired US or European facilities will be allocated to the shipping sector following the completion of the deal.
By Konica Bhatt
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