Woodside’s Beaumont ammonia plant starts up, poised to reshape U.S. fertilizer supply

Woodside Energy said its Beaumont New Ammonia project in Texas has produced its first ammonia during commissioning, marking a significant step for a facility expected to become one of the largest single sources of supply for the global fertilizer market.

The $2.35 billion plant, which will be formally transferred from its original developer OCI to Australia-based Woodside in early 2026, is designed to produce up to 1.1 million metric tons of ammonia a year once fully operational. At that scale, Woodside estimates the project could roughly double current U.S. ammonia exports, a development closely watched by fertilizer producers and importers amid ongoing volatility in global nitrogen markets.

Initial production will consist of conventional, so-called grey ammonia, widely used as a feedstock for nitrogen fertilizers such as urea and ammonium nitrate. Woodside said it has already finalized offtake agreements with “leading global customers” for an undisclosed portion of this output, priced at prevailing market rates, with deliveries starting this year and running through the end of 2026.

Low-carbon ammonia, made using blue hydrogen, is scheduled to follow in the second half of this year. An autothermal reforming unit with carbon capture, being built by Linde adjacent to the Beaumont complex, will supply the low-carbon hydrogen required for that phase. The timing matters for fertilizer buyers seeking to reduce the carbon footprint of crop nutrients, particularly in Europe and parts of Asia where emissions standards are tightening.

Woodside said it is advancing additional offtake talks for the remainder of Beaumont’s capacity, including contracts specifically tied to low-carbon ammonia. While details of the existing agreements were not disclosed, the company’s early success in lining up buyers underscores strong demand for new ammonia supply after years of disruption caused by high gas prices, plant shutdowns, and geopolitical shocks.

For the fertilizer market, the Beaumont start-up promises a sizable new stream of U.S.-based ammonia at a time when global trade flows remain constrained. Analysts say the project could help stabilize prices and improve availability for downstream fertilizer producers, even before its lower-carbon molecules enter the market later this year.