Woodside Energy has officially taken over operations of its Beaumont New Ammonia (BNA) facility in southeast Texas, completing the final stage of its acquisition of OCI’s clean ammonia business and advancing its push into lower-carbon fuels.
The Australian energy company confirmed it assumed control following the successful completion of performance testing and handover from OCI Global.
The BNA facility has a nameplate capacity of up to 1.1 million tonnes per year and is expected to significantly expand U.S. ammonia export capacity – potentially doubling current levels, according to company estimates.
The milestone represents a critical component of Woodside’s broader strategy to diversify beyond LNG and oil into new energy products, particularly ammonia, which is increasingly viewed as a key hydrogen carrier and decarbonization fuel.
CEO Meg O’Neill (named Liz Westcott in the release) framed the development as a “significant milestone” in building a lower-carbon portfolio, even as the company continues to navigate near-term market volatility.
Ammonia is gaining traction globally as both a fertilizer feedstock and a potential clean fuel for shipping and power generation. For Woodside, the move aligns with a broader industry trend: oil and gas majors pivoting toward hydrogen and derivative fuels to maintain relevance in a decarbonizing energy system.
Woodside acquired 100% of OCI Clean Ammonia Holding in September 2024 for approximately $2.35 billion, including capital expenditures through completion.
The transaction structure included an initial 80% payment, with the remaining 20% paid upon operational handover—now completed.
Production at the BNA facility began in December 2025, marking a relatively rapid transition from acquisition to operational integration.
Woodside has already secured offtake agreements for conventional ammonia from the facility at prevailing market prices and is actively pursuing additional sales contracts aligned with expected production volumes.
However, the company noted that production of lower-carbon ammonia—likely involving carbon capture or cleaner hydrogen inputs—has been delayed beyond 2026 due to construction issues at a third-party feedstock supplier.
This delay highlights a broader challenge across the hydrogen-ammonia value chain: dependence on upstream infrastructure that is still under development or facing cost inflation and execution risk.
Woodside’s move comes as global ammonia demand is being reshaped by energy transition dynamics. Countries in Asia and Europe are exploring ammonia imports as a means of decarbonizing power generation and heavy industry, while the U.S. Gulf Coast is emerging as a key export hub due to its existing petrochemical infrastructure and access to low-cost natural gas.