OCI sells giant US blue-hydrogen-based ammonia project to oil & gas firm for $2.35bn

Polly Martin | Source: Hydrogen Insight | Posted 08/05/2024

The Beaumont facility started construction in December 2022, with a final investment decision (FID) taken despite having no firm offtaker on board. Construction is expected to cost a total of $1bn and is due to be completed for start of operations next year. OCI will continue to manage the construction, commissioning and first production of molecules, after which it will be handed over to Woodside.

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Egypt-based OCI has reached an agreement to sell its blue ammonia project in Beaumont, Texas, to Australian oil and gas company Woodside Energy for $2.35 billion. The construction of the Beaumont facility began in December 2022 with an investment decision made, even without a confirmed buyer at that time. Despite expected construction costs of $1 billion, the project is set for completion next year, with OCI handling initial production before handing over operations to Woodside.

The project is expected to produce 1.1 million tonnes of NH3 from fossil gas, with CO2 emissions captured and stored through a pipeline network operated by ExxonMobil. Woodside anticipates returns of over 10% on the investment, with plans to export ammonia to European and Asian markets, which align with their emission reduction targets and clean energy goals. Additionally, Woodside plans for a potential second phase to double production capacity at the site, which is expected to be FID-ready by 2026.

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Source Link: https://www.hydrogeninsight.com/production/oci-sells-giant-us-blue-hydrogen-based-ammonia-project-to-oil-gas-firm-for-2-35bn/2-1-1687519

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OCI sells giant US blue-hydrogen-based ammonia project to oil & gas firm for $2.35bn

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