OCI Global sells Clean Ammonia project to Woodside Energy for $2.35 billion
OCI Global, a leader in hydrogen products, has announced the sale of its Clean Ammonia project in Beaumont, Texas, to Woodside Energy Group Ltd, a global energy company known for its development of the LNG industry in Australia and reliable and affordable energy global solutions. The agreement, finalized through a competitive process, values the project at $2.35 billion on a cash-free and debt-free basis.
Deal Highlights
The sale includes all of OCI’s equity interests in the Clean Ammonia project, which is still under construction. Woodside will pay 80% of the purchase price at closing, with the remaining 20% due upon project completion. OCI will continue overseeing construction and operations until the facility is fully staffed and running.
The transaction is expected to close in the second half of 2024, pending customary closing conditions and approval from OCI shareholders. OCI’s board has recommended that shareholders approve the deal.
Project Details
OCI Clean Ammonia is the world’s first large-scale, low-carbon intensity hydrogen-based ammonia facility. The project began engineering in late 2021, with construction starting in December 2022. The facility is expected to produce its first ammonia in 2025. It integrates Linde’s low-carbon hydrogen production and carbon capture technology with ExxonMobil’s CO2 transportation and sequestration infrastructure. In its first phase, the project will capture and sequester 1.7 million metric tonnes of CO2 annually.
The facility aims to meet blue ammonia specifications and will initially produce 1.1 million metric tonnes per year, with the potential to double this capacity thanks to existing infrastructure.
Advisors and Next Steps
Morgan Stanley & Co. International plc served as the financial advisor to OCI, with A&O Shearman and Vinson & Elkins acting as legal advisors. The transaction now awaits OCI shareholder approval and other customary closing conditions, with completion anticipated later this year.
Enjoyed this story?
Every Monday, our subscribers get their hands on a digest of the most trending agriculture news. You can join them too!
Exciting times in Oryza! Our new platform is set to transform agriculture, bringing real change to farmers' lives. I am proud to be a part of Oryza's mission to transform agriculture with technology, empower farmers and drive sustainability. I strongly believe our focus on innovation and collaboration is key to the future of agriculture.
Discussion0 comments