Woodside Energy, a company based in Australia, will buy Texas' ammonia plant for $2.3 billion.

Woodside Energy, a company based in Australia, announced on Monday that it would acquire OCI Global’s Texas clean ammonia plant for $2.35billion as part of its move towards sustainable energy.

Woodside will gain an advantage by being the first to enter a lower-carbon ammonia industry. This is due to the global shift towards cleaner energy sources as climatic change continues to increase demand.

Woodside CEO Meg O'Neill stated that the global ammonia market is expected to double in size by 2050. Lower carbon ammonia will account for nearly two thirds of this demand.

Woodside stated that the project is under construction and will produce ammonia by 2025, and ammonia with lower carbon content from 2026. The earnings per share of Woodside's shares are expected to increase from 2027.

OCI announced in a press release that it will oversee the construction until the project is operational. Then, it will hand the project over to Woodside.

Woodside stated that phase one will be able to produce 1.1 Mtpa and offset 1.6Mtpa CO2 equivalent.

Woodside announced in July that it had signed a deal worth $1.2 billion to purchase the U.S. Gulf Coast Driftwood Project and Tellurian, a developer of LNG.

(source: Reuters)