SYDNEY—Woodside Energy considers everything to be on the table in a review of its Beaumont New Ammonia facility in Texas, raising the prospect that it could seek a buyer for a project that it agreed to acquire for US$2.35 billion only two years ago.
Chief Executive Liz Westcott said the review reflected a shift in international policy positions since it agreed to the acquisition in August 2024 and slack demand for lower carbon ammonia, which has potential uses in power generation and as a marine fuel.
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"When we took an investment decision, it was a different world," Westcott said in an interview following the Australian company's earnings for the six months through June.
The Beaumont project anchored Woodside's plans to invest up to US$5 billion in so-called new energy projects worldwide by 2030. On Tuesday, Woodside walked away from that target, citing delays to policy frameworks and the slow development of some markets for clean-energy products.
Companies producing crude oil, natural gas and other traditional fuels are benefiting from the tailwind of high energy prices resulting from the Middle East conflict and continuing Ukrainian attacks on Russian infrastructure. Disruptions to global energy supply have intensified concerns among governments about fuel security, prompting many to roll back environmental regulations.
President Trump led the way by shredding U.S. climate policies last year, and several U.S. allies have since changed tack by pursuing policies that support output of fossil fuels. The U.K. appears poised to allow new oil production in the North Sea—after banning exploratory drilling last year. Canada dismantled an unpopular carbon tax and is backing new oil-and-gas infrastructure.
When announcing the Beaumont deal two years ago, 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.
Beaumont's first phase targets output of 1.1 million metric tons of ammonia annually. It aims to use low-carbon intensity hydrogen production and carbon-capture technology from industrial-gases group Linde. Linde has agreements with ExxonMobil to transport and store carbon dioxide produced at the site.
In February, however, the company flagged challenges to the project, including the slow-walking of some climate policies and unexpectedly weak demand from customers for lower-carbon ammonia. It highlighted delays to the International Maritime Organization Net Zero Framework and the cancellation of South Korea's Clean Hydrogen Portfolio Standard.
"Beaumont is a high-quality asset that is operational today," Westcott said when discussing the decision to launch a strategic review of the plant.
It retains the ability to produce lower-carbon ammonia from next year, she added.
The facility achieved a milestone in December, when it produced traditional, or gray, ammonia for the first time.
Write to David Winning at david.winning@wsj.com
