Methanex Corporation (Methanex) on Sunday (8 September) announced that it has entered into a definitive agreement to acquire OCI Global’s (OCI) international methanol business for USD 2.05 billion. 

The transaction includes OCI’s interest in two world-scale methanol facilities in Beaumont, Texas, one of which also produces ammonia. The transaction also includes a low-carbon methanol production and marketing business and a currently idled methanol facility in the Netherlands.

“This is a unique opportunity to create value by acquiring two highly attractive North American methanol assets that will further strengthen our global production base and we expect it will be immediately accretive to free cash flow per share,” said Rich Sumner, President and Chief Executive Officer of Methanex. 

“The Beaumont plants benefit from access to North America’s abundant and favourably-priced supply of natural gas feedstock, and are expected to increase our global methanol production by over 20 percent.”

“We believe the transaction will provide significant long-term value to Methanex shareholders while aligning with our strategic objectives of industry leadership, operational excellence, and financial resiliency,” said Mr. Sumner. 

“From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing.”

Nassef Sawiris, Executive Chairman of OCI, added, “We are pleased with the opportunity to achieve a significant ownership position and are highly confident in Methanex’s ability to create enduring value for shareholders. As the global leader committed to safety and operational excellence, we identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023.”

As part of the transaction, Methanex will acquire the following:

• A methanol facility in Beaumont, Texas with an annual production capacity of 910,000 tonnes of methanol and 340,000 tonnes of ammonia. This plant was restarted in 2011 and since that time the plant has been upgraded with USD 800 million of capital for full site refurbishment and debottlenecking.
• A 50 percent interest in a second methanol facility also in Beaumont, Texas, operated by the joint venture Natgasoline LLC (Natgasoline). The Natgasoline plant was commissioned in 2018 and has an annual capacity of 1.7 million tonnes of methanol, of which Methanex’s share will be 850,000 tonnes.
• OCI HyFuels, which produces low-carbon methanol and sells industry-leading volumes with trading and distribution capabilities for renewable natural gas (RNG). With nine years of experience in the low-carbon methanol business and with an array of blue-chip customers, this will enhance Methanex’s existing Low Carbon Solutions function with additional expertise in this developing segment.
• A methanol facility in Delfzijl, Netherlands with an annual capacity to produce 1 million tonnes of methanol. This facility is not currently in production due to unfavourable pricing for natural gas feedstock.

Closing of the transaction is expected in the first half of 2025. The transaction has been approved by the boards of directors of both companies and is subject to receipt of certain regulatory approvals and other closing conditions including TSX approval for the issuance of Methanex shares to OCI.

The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction.

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Photo credit: OCI Global
Published: 10 September, 2024

Corvus Energy, supplier of energy storage systems (ESS) for maritime applications, on Wednesday (4 September) announced that the Corvus Pelican Fuel Cell System has received Type Approval from classification society DNV.

The system, which was developed through the three-year-long H2NOR project, is the first Fuel Cell System (FCS) designed to be inherently gas-safe, making it the safest fuel cell system in the market.

Corvus Energy said receiving type approval from DNV confirmed that the Corvus Pelican Fuel Cell System meets the most stringent performance and safety standards required by the maritime industry.

Olaf Drews, Head of Engines & Pressurized Equipment Maritime, said: “It is a special fuel cell system, because the Pelican uses nitrogen for inerting of the fuel cell space.”

“It is the first fuel cell system that uses this technology and this brings it to a very preferred safety level. This is a milestone, and we look forward to the first ship project.”

Despite technology improvements and advancements in battery electric vessels, most vessels cannot achieve zero-emission operations for extended periods of time using batteries alone. For vessels on longer routes and vessels that are unable to charge often enough, we need to add clean fuel and fuel cells to enable extended zero-emission capabilities.

CEO of Corvus Energy, Fredrik Witte, said: “Toyota’s unsurpassed knowledge in developing high-quality and efficient fuel cells, in addition to the strong collaboration and high level of maritime experience among the partners in this development project, has been key.”

“This is a milestone for net zero shipping. We now have a high-quality range extender to add to our existing ESS portfolio with the scalability and the safety needed to be a real driver in the future of marine decarbonization.”

The first Corvus Pelican Fuel Cell System is produced and ready to be installed onboard MS Skulebas, a 35-meter fishing and training vessel owned by Vestland County and operated by Måløy Upper Secondary School in Norway. 

The vessel already has a 1 MWh battery system onboard. By adding the Corvus Pelican Fuel Cell System and hydrogen storage, the vessel will be able to operate for four days on zero emission.

 

Photo credit: Corvus Energy
Published: 10 September, 2024

United European Car Carriers (UECC) on Monday (9 September) said Toyota Motor Europe, Ford of Europe and another unnamed major European vehicle manufacturer have signed up for UECC’s Sail for Change sustainability programme. 

The vehicle manufacturers are set to achieve major reductions in emissions from their logistics chain by using UECC vessels fuelled by bioLNG for cargo transport across Europe.

The combined yearly emissions reduction for UECC from the manufacturer trio is estimated at around 80,000 tonnes, or over one-third of its global Scope 1 emissions from ship operations of approximately 220,000 tonnes.

“We are thrilled that three of our major clients have decided to participate in Sail for Change, which demonstrates the power of industry collaboration in advancing decarbonisation. Those willing to invest in sustainable transport now will ultimately reap the rewards as new regulations give a commercial impetus for green operations,” said UECC CEO Glenn Edvardsen.

As well as boosting their environmental performance with lower Scope 3 emissions, all three vehicle manufacturers will be able to significantly reduce their costs exposure to the EU Emissions Trading System (EU ETS), while boosting uptake of alternative low-carbon fuels in line with FuelEU Maritime set to take effect next year, according to UECC’s Energy & Sustainability Manager Daniel Gent.

Under Sail for Change, UECC has facilitated bunkering of ISCC-EU certified bioLNG - or liquefied biomethane - on its five LNG dual-fuel and multi-fuel Pure Car and Truck Carriers (PCTCs) at the Port of Zeebrugge through an earlier agreement with Titan Clean Fuels.

This enables the leading European shortsea RoRo carrier to perform carbon-neutral cargo loading operations across its port network, with customers able to access verified data on emissions reductions with clean fuel use through a CO2 registry covering the entire supply chain.

“UECC has made proactive strides in advancing industry adoption of alternative fuels over the past decade, having also piloted the use of biofuels, and bunkering of bioLNG marks another big step forward, both in reducing the carbon footprint of our clients and increasing demand for low-carbon fuels,” Gent said. 

“Our aim with Sail for Change has been to provide a standalone product that enables our customers to facilitate a sustainable fuel switch in our fleet that has a direct and immediate impact on their emissions.”

And he said industry interest has exceeded UECC’s expectations, resulting in the Green Gas Month initiative being extended beyond July to subsequent months and years. The company is now looking to scale up the programme to allow more companies to participate in future years based on growing demand, according to Gent.

“Our customers have ambitious decarbonisation targets and see that using alternative fuels can cut a significant swath of emissions from maritime transport. There is now also a regulatory payback from using a decarbonisation service. Given it will be more economical to use sustainable fuels at some point in the future, customers are keen to secure supplies now,” he explained. 

 

Photo credit: United European Car Carriers
Published: 10 September, 2024