By David Winning
SYDNEY--Woodside Energy signaled a delay to production of lower-carbon ammonia from its Beaumont New Ammonia project in Texas, citing construction issues at the third-party feedstock supply facility.
Woodside had planned to begin producing lower-carbon ammonia in the U.S. in the second half of this year. Potential uses of lower-carbon ammonia include in power generation and as a marine fuel.
On Thursday, Woodside said maiden output of lower-carbon ammonia is now likely to begin after 2026.
News of the delay was provided alongside Woodside confirming it has assumed operational control of the Beaumont facility from OCI Global. The plant's first phase aims to produce 1.1 million metric tons of ammonia annually.
Woodside agreed to acquire the Beaumont project in August 2024 for US$2.35 billion, anchoring plans to invest up to US$5 billion in so-called new energy projects worldwide by 2030.
The Beaumont facility achieved a major milestone in December, when it produced traditional, or gray, ammonia for the first time.
When announcing the Beaumont deal, Woodside highlighted lower-carbon ammonia's potential to replace higher-emitting fuels, citing industry forecasts that it could account for nearly two-thirds of total ammonia demand by 2050 as industries decarbonize and regulations tighten.
The facility will use low-carbon intensity hydrogen production and carbon-capture technology from industrial-gases group Linde. Linde has agreements with Exxon Mobil to transport and store carbon dioxide produced at the site.
"In the facility's operational phase and in the face of current market disruptions, we remain focused on safely delivering ammonia supply to our customers," Chief Executive Liz Westcott said on Thursday.
Woodside said it has agreed to supply deals at prevailing market prices from the conventional ammonia market. It continues to pursue additional sales agreements.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
03-25-26 1843ET
