Maersk's methanol-fueled feeder ship bunkers green methanol fuel in Singapore. Photo courtesy Maritime & Port Authority of Singapore (MPA)

Maersk's methanol-fueled feeder ship bunkers green methanol fuel in Singapore. Photo courtesy Maritime & Port Authority of Singapore (MPA)

OCI to Double Green Methanol Production Capacity in United States

Mike Schuler
Total Views: 1322
September 13, 2023

OCI Globa plans to double its green methanol production capacity to 400,000 metric tons to meet growing demand from high emissions industries such as road transport, shipping, and industrial.

OCI is the world’s largest producer of the green fuel and this past summer it supplied the green methanol fuel for the world’s first methanol-powered containership on its maiden voyage from South Korea to N. Europe. The increased production will involve scaling-up capacity at OCI’s facility in Beaumont, Texas by 200,000 metric tons.

OCI says it plans to enter supply agreements for renewable natural gas (RNG) exceeding 15,000 mmbtu per day and secure waste and development rights from the City of Beaumont for the company’s first upstream RNG production facility, with production starting in Q1 2025.

Green methanol will be produced from renewable feedstocks such as renewable natural gas, green hydrogen, and other feedstock partnerships.

Green methanol can significantly reduce carbon footprint and emissions in traditionally hard-to-abate sectors. OCI currently produces 200,000 metric tons of green methanol, which is used as a fuel-blend to reduce emissions from road fuels, in various industries, and as fuel for shipping.

OCI has projected growth in the green methanol market, with an incremental demand of more than 6 million tonnes by 2028 due to the adoption of green methanol as a shipping fuel, which is based on the 225 dual-fueled methanol vessels currently on order.

This summer, OCI’s HyFuels business suppled the green methanol fuel for the maiden voyage of the world’s first methanol-powered containership owned by A.P. Moller-Maersk. 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.

“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,” said Ahmed El-Hoshy, CEO, OCI Global.

“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,” El-Hoshy added.

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