OCI HyFuels will add green hydrogen-based e-methanol to its production portfolio for the first time
OCI Global, the world’s largest producer of green methanol, has announced plans to double its green methanol production capacity to approximately 400,000 metric tons per year. OCI currently has capacity to produce up to 200 thousand metric tons of green methanol.
The scale-up plans include entering into supply agreements for renewable natural gas (RNG) exceeding 15,000 mmbtu per day – as well as securing the waste and development rights from the City of Beaumont. This is OCI’s first upstream RNG production facility and production is slated to start in Q1 2025.
OCI has projected growth in the green methanol market of incremental demand of more than 6 million tonnes by 2028, due to the adoption of green methanol as a shipping fuel, based on the 225 dual-fuelled methanol vessels now on order.
This summer, the first ever green methanol container vessel, owned by AP Moller Maersk, was fueled with OCI HyFuels green methanol on its maiden voyage from Korea to Copenhagen. The company also announced last month a new agreement with Xpress Feeder Lines to supply their green methanol ships at the Port of Rotterdam from 2025.
Ahmed El-Hoshy, CEO, OCI Global said: “Today’s announcement cements OCI’s position as the leading green methanol producer globally. It also represents another milestone in our decarbonization journey as a business, and our commitment to driving the energy transition.
“It’s positive that we are starting to see industry make that commitment too. We are seeing encouraging signs with regulatory support for both ammonia and methanol in shipping, such as the EU’s FuelEU maritime regulation and the latest IMO strategy bolstering the value of low carbon and green methanol and ammonia relative to fossil fuels. It is clear that both fuels will need to play an integral role to reach the IMO’s revised targets and OCI Global stands ready to supply them. However, these targets must be supported by practical mechanisms to continue to maintain momentum towards meeting global greenhouse gas emissions reduction targets.”
Bashir Lebada, CEO, OCI Methanol/HyFuels said: “E-methanol will also be a new product for us, and with the RFNBO mandates in the coming years, will quickly become the blendstock of choice with gasoline to ensure compliance. We are also very excited to announce the expansion of our 13-year partnership with the City of Beaumont, this landfill will bolster our product portfolio with additional green fuels right in our backyard and add to our existing supply portfolio of RNG.”
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