Woodside Energy Group Ltd (ASX:WDS, LSE:WDS, OTC:WOPEF) announced it had acquired a clean ammonia project on the US Gulf Coast, in Texas.
It is notably the world's first ammonia plant that uses auto thermal reforming with 95%+ CO2 capture technology, said Woodside
The project is currently under construction and is expected to produce its first ammonia by 2025, with lower-carbon ammonia production starting in 2026.
The acquisition, which includes capital expenditure for the first phase, is valued at approximately $1.75 billion.
"This transaction positions Woodside in the growing lower carbon ammonia market,” chief executive Meg O’Neill said in a statement.
“The potential applications for lower carbon ammonia 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.”