OCI Global, a prominent global producer and distributor of hydrogen products, has entered into a binding equity purchase agreement for the sale of 100 percent of its equity interests in the OCI Clean Ammonia project currently under construction in Beaumont, Texas. The buyer, Woodside Energy Group Ltd, will acquire the project for a total consideration of USD 2.35 billion on a cash-free, debt-free basis.
Woodside Energy Group will acquire 100 percent of the equity interests in OCI Clean Ammonia. The agreed purchase price of USD 2.35 billion will be paid in two instalments: 80 percent at the closing of the transaction and the remaining balance upon project completion. OCI will remain responsible for managing the construction, commissioning, and start-up of the facility until it is fully operational and staffed, at which point Woodside will take over.
The transaction, subject to customary closing conditions and OCI shareholder approval, is expected to close in the second half of 2024. The OCI board of directors has already approved the transaction and recommended it to the shareholders.
OCI Clean Ammonia Project
The OCI Clean Ammonia project is recognised as the world’s first large-scale, low-carbon intensity hydrogen-based greenfield ammonia facility. Engineering began in late 2021, with construction starting in December 2022. The project is slated to produce its first ammonia in 2025. The facility represents a collaboration between OCI and Linde, integrating Linde’s low CI hydrogen production and carbon capture technology with OCI’s ammonia production, storage, and transportation infrastructure. Additionally, ExxonMobil is contracted for CO2 transportation and sequestration infrastructure.
The project’s first phase will capture and sequester 1.7 million metric tonnes of CO2 annually. OCI Clean Ammonia is poised to meet blue ammonia specifications and is the only blue ammonia facility under construction globally. It is designed to produce 1.1 million metric tonnes per year in its first phase, with infrastructure and utilities in place to double this capacity. This design philosophy is expected to yield significant savings in budget and timeline for future expansions.
Statements from OCI Leadership
Nassef Sawiris, executive chairman of OCI, expressed pride in launching the first FID’d blue ammonia project on a global scale, with first production expected in less than a year. He highlighted the project’s potential to reduce carbon emissions in various sectors and expressed confidence in Woodside as a custodian of the landmark asset.
Ahmed El Hoshy, CEO of OCI, acknowledged the efforts of the OCI team in developing the project and anticipated significant value addition by Woodside as the future owner and operator. He emphasised the importance of close collaboration with Woodside’s management to ensure successful project completion and transition.
Hassan Badrawi, CFO of OCI, reflected on OCI’s thirty-year track record as an investor, developer, and operator, expressing pride in the company’s journey and accomplishments across sectors and geographies.
For more information visit www.oci-global.com
