OIL services heavyweight Wood has won a contract to help design a major hydrogen production facility in South America as it prepares to publish delayed annual results.
Aberdeen-based Wood delayed publication of its results for 2021 in February as a review continued into a contract in Poland, where it has suffered costly setbacks.
The contract covers work on buildings to house the Aegis Ashore anti-missile defence facility for the US Army Corps of Engineers.
READ MORE: Shares in North Sea oil services giant plunge as it faces big loss on Polish contract
Wood said on Monday that following completion of the review it expected to record a $100m exceptional charge in respect of the contract, in line with an estimate published in February. The company now expects to publish its 2021 results next Wednesday, April 20.
The group said yesterday that it has been engaged to provide conceptual engineering services in connection with what it described as a large-scale green hydrogen production facility that is to be developed in Chile.
The plant will produce ammonia from green hydrogen and is expected to help secure a big reduction in industrial emissions compared with alternative methods.
The contract provides a vote of confidence in Wood’s abilities as oil services firms look to increase their exposure to lower-carbon energy markets. These are set to grow rapidly amid the global drive to reduce fossil fuel use.
The plant will feature a wide range of facilities including wind turbines, an electrolyser for use in the production of hydrogen from water, an ammonia production plant and associated power transmission and backup facilities.
It is being developed by renewable energy group Total Eren under a collaboration agreement with the University of Magallanes (UMAG).
READ MORE: North Sea gas field back in production as UK aims to reduce reliance on imports
Wood inherited the Aegis Poland contract following the £2.2billion takeover of Amec Foster Wheeler in 2017. This was a landmark move in chief executive Robin Watson’s drive to reduce the company’s reliance on the oil services business.
Amec Foster Wheeler had strong positions in markets such as environmental engineering and infrastructure.
Wood recorded around $130m total losses in respect of Aegis Poland in its accounts for 2018 and subsequent periods.
The fixed price contract was awarded to Amec Foster Wheeler in 2016 with a reported value of $183m.
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