Australian energy group Woodside has delayed the final investment decision on its H2OK hydrogen project in the US to focus on ammonia production.

The company says that it will continue efforts to “improve project competitiveness and secure binding offtake agreements,” as it reviews the final 45V clean hydrogen production tax credit regulations released by Washington earlier this month. The move also comes amid regulatory and funding uncertainity for clean technologies under the Trump administration. 

Woodside acquired the complex from OCI Global for $2.3 billion last August and expects to invest a further $450-500 million in capital expenditure this year. 

The proposed H2OK project, to be located in Ardmore, Oklahoma, would produce up to 60 t/day of liquid hydrogen through electrolysis and liquefaction. It would initially target the heavy transport sector with the potential to expand to other applications.

H2OK would require around 200 megawatts of electricity to be sourced from the Oklahoma Gas and Electric Grid, which includes “a large portion” of wind power.

In 2022, Nel Hydrogen and Air Liquide were contracted for the electrolysis and liquefaction equipment, respectively.

Woodside is now prioritising the Beaumont New Ammonia project, which is expected to start its first phase in the second half of 2025. Located on the US Gulf Coast in Beaumont, Texas, it has a design capacity of 1.1 million tonnes/year in the first phase. 

This project will target conventional ammonia customers this year, then move to lower-carbon ammonia customers in Europe and Asia when carbon capture and storage (CCS) is operational.

The ammonia will be produced using natural gas, with carbon sequestration targeted from 2026, Kallanish notes. The nitrogen and hydrogen feedstock will be sourced primarily from Linde’s nearby facility, where ExxonMobil is expected to provide CCS services from next year.