Woodside Energy Group Ltd’s Beaumont New Ammonia (BNA) project in Texas has reached the testing stage and is on track for commercial startup “early” next year, the Australian company said Monday.
BNA, which has a production capacity of 1.1 million metric tons a year, “produced first ammonia following the completion of systems testing, representing the first phase of operations commissioning of the facility”, Woodside said in an online statement.
“Commercial production of ammonia from BNA is expected to begin following handover to Woodside Energy from OCI Global in early 2026. Production of lower-carbon ammonia is targeted to start in the second half of 2026.
“Demand for lower-carbon ammonia continues to develop globally, with strong interest from customers in Europe and Asia as they pursue energy security and decarbonization objectives.
“Woodside has also finalized agreements with leading global customers to supply significant volumes of conventional ammonia from the BNA facility. Deliveries will commence in 2026 and continue through yearend, under contracts that reflect prevailing market prices.
“Additional agreements are being advanced to align with expected BNA output, including for lower-carbon ammonia”.
Woodside added, “In the lead-up to handover, the project will continue with additional verification, performance testing and operational preparedness activities”.
Besides ammonia, BNA will also produce “hydrogen-adjacent products”, Woodside said.
“Once operational, BNA has the potential to approximately double U.S. ammonia exports, contributing to regional economic growth and supporting American energy leadership”, it said.
Woodside acquired the project from Amsterdam-based OCI last year for $2.35 billion.
In a statement September 30, 2024, OCI said it would “continue to manage the construction, commissioning and startup of the facility through provisional acceptance” after the divestment.
“Production of lower carbon ammonia is conditional on supply of carbon-abated hydrogen and ExxonMobil’s CCS [carbon capture and storage] facility becoming operational”, OCI said.
“The all-cash consideration of approximately $2,350 million is inclusive of capital expenditure through completion of the first phase, with $1,880 million paid and the remaining $470 million to be paid at project completion”, it said.
OCI had signed an agreement with Linde PLC for the supply of emissions-abated hydrogen, as well as nitrogen, to the Beaumont project, as announced by OCI February 6, 2023.
On April 4, 2023, Linde and ExxonMobil announced an agreement under which ExxonMobil would transport and permanently store up to 2.2 million metric tons a year of carbon dioxide from Linde’s hydrogen plant, expected to start up this year.
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