Woodside has completed the acquisition of 100% of OCI Clean
Ammonia Holding B.V., which holds its lower carbon ammonia project
in Texas (Project), from OCI N.V. (together with its affiliates,
OCI).1
The completion follows Woodside’s announcement on 5 August 2024
that it had entered into an agreement to acquire OCI’s 1.1 Mtpa
Clean Ammonia Project. Following start up of carbon capture and
sequestration, the Project will generate ammonia with less than 35%
the lifecycle emissions intensity of unabated ammonia.2
Woodside CEO Meg O’Neill said the transaction positioned
Woodside as an early mover in the growing lower carbon ammonia
market.
“As a global energy provider, Woodside is focused on lower
carbon ammonia and its increasingly important role in the world’s
energy mix. The potential applications are in power generation,
marine fuels and as an industrial feedstock, as it displaces
higher-emitting fuels.
“Global ammonia demand is forecast to double by 2050 with lower
carbon ammonia making up nearly two-thirds of total demand.
Evolving decarbonisation policies have potential to attract a
premium price for lower carbon ammonia.3
“The transaction will generate returns exceeding our capital
allocation framework targets, with phase 1 of the Project expected
to be free cash flow accretive from 2026. It also represents a
material step towards delivering our Scope 3 investment and
abatement targets.”4
The Project remains under construction and is targeting
production of first ammonia from 2025 and lower carbon ammonia from
2026.5 OCI will manage the construction of the Project through
provisional acceptance.
The all-cash consideration of approximately $2,350 million is
inclusive of capital expenditure through completion of the first
phase, with 80% paid and the remaining 20% to be paid at Project
completion.
_________________________________
1 See disclaimer for information on “lower
carbon ammonia”.
2 EU proposed standards calculation method
for carbon intensity.
3 Source: Wood Mackenzie Global Ammonia
Strategic Planning Outlook 2024, published 31 May 2024.
4 For more information on this transaction
and Woodside’s Scope 3 targets, please refer to the announcement
titled ‘Woodside to acquire OCI's Clean Ammonia Project’, released
5 August 2024.
5 Production of lower carbon ammonia is
conditional on supply of carbon abated hydrogen and ExxonMobil’s
CCS facility becoming operational.
This announcement was approved and
authorised for release by Woodside’s Disclosure Committee.
Definitions
Woodside uses “lower carbon” to describe the characteristic of
having lower levels of associated potential greenhouse gas (GHG)
emissions when compared to historical and/or current conventions or
analogues, for example relating to an otherwise similar resource,
process, production facility, product or service, or activity.
Forward-looking statements
This announcement contains forward-looking statements with
respect to Woodside's business and operations, market conditions,
results of operations and financial condition, including, for
example, but not limited to, statements regarding the transaction,
the timing of completion of other transactions, the timing of
completion of Woodside's projects and expectations regarding future
expenditures and future results of projects. All statements, other
than statements of historical or present facts, are forward-looking
statements and generally may be identified by the use of
forward-looking words such as 'guidance', 'foresee', 'likely',
'potential', 'anticipate', 'believe', 'aim', ‘aspire’, 'estimate',
'expect', 'intend', 'may', 'target', 'plan', 'forecast', ‘outlook’,
'project', 'schedule', 'will', 'should', 'seek' and other similar
words or expressions. Similarly, statements that describe the
objectives, plans, goals or expectations of Woodside are
forward-looking statements.
Forward-looking statements in this announcement are not
guidance, forecasts, guarantees or predictions of future events or
performance, but are in the nature of future expectations that are
based on management’s current expectations and assumptions. Those
statements and any assumptions on which they are based are subject
to change without notice and are subject to inherent known and
unknown risks, uncertainties, assumptions and other factors, many
of which are beyond the control of Woodside, its related bodies
corporate and their respective officers, directors, employees,
advisers or representatives. If any of the assumptions on which a
forward-looking statement is based were to change or be found to be
incorrect, this would likely cause outcomes to differ from the
statements made in this announcement.
A detailed summary of the key risks relating to Woodside and its
business can be found in the "Risk" section of Woodside's most
recent Annual Report released to the Australian Securities Exchange
and the London Stock Exchange and in Woodside's most recent Annual
Report on Form 20-F filed with the United States Securities and
Exchange Commission and available on the Woodside website at
https://www.woodside.com/investors/reports-investor-briefings. You
should review and have regard to these risks when considering the
information contained in this announcement.
All information included in this announcement, including any
forward-looking statements, reflects Woodside’s views held as at
the date of this announcement and, except as required by law or
regulation, neither Woodside, its related bodies corporate, nor any
of their respective officers, directors, employees, advisers or
representatives intends to, undertakes to, or assumes any
obligation to, provide any additional information or update or
revise any information or forward-looking statements in this
announcement after the date of this announcement, either to make
them conform to actual results or as a result of new information,
future events, changes in Woodside’s expectations or otherwise.
Investors are strongly cautioned not to place undue reliance on
any forward-looking statements. Actual results or performance may
vary materially from those expressed in, or implied by, any
forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20240930829886/en/
INVESTORS Marcela Louzada M: +61 456 994 243 E:
investor@woodside.com
MEDIA Christine Forster M: +61 484 112 469 E:
christine.forster@woodside.com
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