December 29, 2025 [Yahoo Finance]- Woodside Energy has reached a key commissioning milestone at its Beaumont New Ammonia facility in southeast Texas, with the plant producing first ammonia following the completion of initial systems testing.

The achievement marks the first phase of operations commissioning for the 1.1 million tonnes-per-annum project, which is being developed in partnership with OCI Global. Commercial production is expected to begin in early 2026, following the formal handover of the facility from OCI to Woodside.

Woodside said production of lower-carbon ammonia is targeted for the second half of 2026, aligning with growing international demand for cleaner fuels as governments and industrial buyers pursue energy security and decarbonisation goals. Interest has been particularly strong from customers in Europe and Asia, where ammonia is increasingly viewed as a viable hydrogen carrier and shipping fuel.

In parallel, Woodside has finalised supply agreements with major global customers for conventional ammonia produced at the Beaumont facility. Deliveries under these contracts are set to begin in 2026 and run through the end of the year, with pricing linked to prevailing market conditions. Additional offtake agreements, including for lower-carbon ammonia volumes, are currently under negotiation to align with the facility’s expected output profile.

“We are pleased with the results of the commissioning and systems testing completed to date,” said Kellyanne Lochan, Woodside’s Vice President for Beaumont New Ammonia. “These outcomes confirm the facility’s production readiness and our ability to move toward commercial start-up following handover.”

Ahead of full operations, the project will continue through further verification, performance testing, and operational preparedness activities. Both OCI and Woodside said they remain focused on ensuring the plant enters service safely and efficiently, in compliance with all regulatory and contractual requirements.

Once fully operational, the Beaumont New Ammonia facility has the potential to roughly double U.S. ammonia exports, strengthening the country’s position in global ammonia and hydrogen-adjacent markets. The project also supports regional economic growth in southeast Texas and reinforces the U.S. role in supplying both conventional and lower-carbon energy products to international markets.

The milestone comes as energy majors and commodity traders increasingly invest in ammonia infrastructure, viewing it as a bridge between today’s fossil-based systems and future hydrogen economies. For Woodside, the Beaumont project represents a strategic expansion beyond LNG into scalable, export-oriented clean fuel value chains.