Woodside Energy postpones blue ammonia production

Australian energy firm Woodside Energy has pushed back blue ammonia production timeline, citing issues with its third-party feedstock suppliers.

IMAGE: Ammonia plant in Beaumont, Texas on the US Gulf Coast. Woodside Energy

Woodside produced its first batch of grey ammonia last year at its 1.1 million mt/year plant in Beaumont, Texas in the US. It had planned to start blue ammonia production at the facility this year.

But it has now delayed blue ammonia production to “after 2026”, without providing a concrete timeline.

Third-party suppliers responsible for autothermal reforming units used to produce low-carbon hydrogen with carbon capture are facing permitting delays and are running behind schedule, delaying construction of the units, Woodside’s acting chief executive Liz Westcott said at a recent investor briefing.

Grey ammonia produced at the Beaumont facility is already available for bunkering, alongside other sectors.

Westcott added that uptake for conventional ammonia has been strong, with “leading global customers” securing long-term offtake agreements at current market prices, without specifying whether shipping companies are among them.

“… 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,” she said.

“But the ability to introduce lower-carbon ammonia in the traditional market is strong, as well as in these emerging new areas. So, we do see the prospects as strong, they are just slower to build up,” Westcott added.

She added that while market growth for blue ammonia has been slower than expected, demand from bunkering and other sectors could pick up in the near future.

By Konica Bhatt

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