OCI Global to reinforce its Green Methanol Production

OCI Global, a prominent player in the nitrogen, methanol, and hydrogen sectors, has unveiled plans to considerably boost its green methanol production, targeting an annual capacity of around 400,000 metric tonnes. This initiative signifies the company's foray into green hydrogen-based e-methanol production, underscoring its commitment to sustainable energy. The main thrust of this augmentation will be at the company's Beaumont, Texas facility, set to operationalize by the early months of 2025, making it OCI's pioneering renewable natural gas (RNG) production site.

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To realize this vision, OCI aims to forge supply contracts for RNG surpassing 15,00 mmbtu daily, along with acquiring waste and development rights from the City of Beaumont. Ahmed El-Hoshy, the company's CEO, highlighted growing regulatory backing for low carbon and green methanol and ammonia in the shipping sector, referencing directives like the EU’s FuelEU maritime and the recent IMO strategy. El-Hoshy emphasized the pivotal roles both fuels have in meeting the IMO’s revised objectives, adding that strategic approaches are essential for sustaining progress in curbing global greenhouse gas emissions.

A testament to the rising demand for green methanol was observed when AP Moller Maersk's inaugural green methanol vessel was powered by OCI HyFuels during its initial journey from Korea to Copenhagen. Anticipating the market's trajectory, OCI predicts that by 2028, the green methanol sector would witness a demand surge exceeding six million tonnes, largely attributed to its growing preference as a marine fuel. The rationale behind this is the 225 methanol-powered vessels currently commissioned.

Elaborating on green methanol's production, it's derived from green hydrogen, generated when renewable power sources facilitate the electrolysis of water. The resultant hydrogen can be channelled into multiple uses, one of which is green methanol production. This production method, through CO2 hydrogenation or biomass gasification, is eco-friendly as it avoids fossil carbon emissions. Bashir Lebada, head of OCI Methanol/HyFuels, affirmed methanol's rising stature as a pivotal solution in transportation, emphasizing its current availability and their goal to continually enhance production capacities to meet the escalating demand.

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According to the article by Procurement Resource, OCI Global is intensifying its commitment to sustainable energy with plans to ramp up green methanol production to 400,000 metric tonnes annually. Their Beaumont, Texas facility stands as a testament to this pledge, set to become a pioneering renewable natural gas site by 2025. As green methanol gains traction in the shipping sector, supported by regulatory endorsements, OCI positions itself as a leader in meeting global demands. Emphasizing methanol's significance, OCI asserts its role as a viable and immediate solution in the transportation realm.