ESG Today reports that the plant, located in Texas, will support Woodside Energy's sustainability goals for reducing Scope 3, for which it will invest up to 5 billion USD. New energy products and low-carbon services are among the company's focus points in this regard, as well as the goal to produce 5 million tons of low-emission fuels per year by 2030.

Woodside CEO Meg O’Neill, said that "this transaction positions Woodside in the growing lower carbon ammonia market. The potential applications for lower carbon ammonia are in power generation, marine fuels and as an industrial feedstock, as it displaces higher-emitting fuels."

The facility is currently under construction and could begin production in 2025, initially at 1.1 million tons per year, while lower-carbon ammonia, produced with adjacent carbon capture, could be manufactured in 2026.

Woodside Energy officials said that in the first phase, the facility could have a production capacity of 1.6 million tons per year, while a second phase would double it to 3.2 million tons.

The company will pay 80% of the acquisition at the closing of the transaction and the balance, when the project will be completed. OCI will continue to take care of the construction and the commissioning of the facility.