The European Community Shipowners’ Associations (ECSA) on Thursday (12 September) announced the launch of the Clean Maritime Fuels Platform. 

The new Clean Maritime Fuels Platform is a bottom-up industry initiative aiming to enhance communication between the shipping sector and fuel producers and to identify common challenges and possible solutions, considering the implementation of the Fit for 55 package and the transition to a net-zero economy by 2050.

Members of the initiative include ECSA, FuelsEurope, eFuel Alliance, European Waste-based & Advanced Biofuels Association (EWABA), HydrogenEurope and Methanol Institute. 

According to ESCA, access to clean maritime fuels is a top priority for the decarbonisation of the shipping sector. 

The recently published Draghi report on the Future of European Competitiveness identifies shipping as one of the most difficult sectors to decarbonise, requiring around 40 billion in annual investments between 2031 and 2050. 

The report highlighted that, while the EU is a world leader in sustainable renewable and low-carbon fuels for the decarbonisation of transport, it has limited installed capacity and planned production. The EU needs to start building a supply chain for clean fuels, or the costs of meeting its targets will be significant.

Representatives of ECSA, FuelsEurope, eFuel Alliance, EWABA, HydrogenEurope and Methanol Institute held their first meeting on 12 September and agreed on the objectives and the working principles of the new platform. Members also started to discuss the key topic of infrastructure gaps.

The platform will focus on policies and tools to support the production and uptake of clean maritime fuels in Europe including areas such as maritime in EU ETS and funding opportunities.

The platform will hold regular meetings with ECSA taking care of the secretariat’s tasks.  

“Today, the shipping and energy industry join forces and launch a dialogue platform that can facilitate better flow of information about the common challenges we are facing. We need all hands on deck to make the energy transition happen. In order to meet our targets, we need clean fuels available in the market in sufficient quantities and at an affordable price. European shipowners are proud to launch with the fuel producers the Clean Maritime Fuels Platform”, said Sotiris Raptis, ECSA Secretary General.

“We are very excited to launch the Clean Maritime Fuels Platform today. Our 55+ members from across the EU are working tirelessly to produce waste-based and advanced biodiesel of the highest quality requirements and GHG savings to bring a new era of clean shipping to Europe. We believe that a closer collaboration between renewable fuel suppliers and ship owners will significantly reduce technical, operational, and financial barriers across the supply chain for the development and uptake of renewable maritime fuels”, said Angel Alvarez Alberdi, Secretary General of EWABA.

“The energy transition is a gradual journey, not an overnight change. It demands a robust regulatory framework and collaboration among all stakeholders involved to drive effective decarbonization. As we work alongside our 100 members through the complexities of this transition, the Clean Fuels Maritime Platform will play a crucial role in accelerating our shift to cleaner fuels and innovative technologies. By combining our collective expertise and efforts, we are not only tackling the pressing need for emission reductions but also laying the groundwork for a more resilient and sustainable maritime industry”, said Greg Dolan, CEO of Methanol Institute.

 

Photo credit: European Community Shipowners’ Associations
Published: 13 September, 2024

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.

Related: OCI Global and TankMatch complete green methanol bunkering op in Rotterdam
Related: OCI Global awarded first green methanol bunkering permit at Egypt ports
Related: OCI Global to double green methanol capacity in US to meet demand from industries
Related: OCI Global to supply X-Press Feeders with green methanol bunker fuel in Rotterdam
Related: Maersk boxship receives OCI Global methanol bunker fuel at Port of Rotterdam
Related: OCI Global completes first green methanol bunkering of Maersk methanol-fuelled boxship

 

Photo credit: OCI Global
Published: 10 September, 2024

Methanol-related advancements this week include a new e-methanol production plant in Sweden by Uniper, the order of 12 methanol-powered container ships by Cosco, and the completion of first ship-to-ship methanol bunkering in Trinidad and Tobago by Methanex. These developments underscore the industry's dedication to cutting emissions and improving environmental sustainability, while demonstrating methanol's potential as a viable alternative fuel.

Methanol marine fuel related developments for Week 35 of 2024:

Cruise Industry Advances Sustainability Amid Fleet Expansion

Date: August 26, 2024

Key Points:

The cruise industry is making strides towards sustainability, achieving a 16% reduction in average CO2 emissions per ship over five years despite fleet expansion. Methanol, among other alternative fuels, is being considered by some operators as a potential low-carbon solution to further reduce emissions. Methanol's benefits include reduced sulfur oxides and particulates, supporting the industry's shift towards greener practices.

Fugro Pioneer Advances Methanol Conversion for Sustainable Marine Operations

Date: August 27, 2024

Key Points:

Fugro has completed the initial phase of converting its vessel, Fugro Pioneer, to operate on methanol , as part of the MENENS project. This includes replacing two of the four original engines with methanol-capable ones to reduce carbon emissions by over 90% compared to conventional diesel. The conversion supports Fugro's goal of achieving net-zero operations by 2035 and promotes the use of green methanol in the maritime industry.

Methanex completes first STS methanol bunkering demonstration in Trinidad

Date: August 27, 2024

Key Points:

Methanex has completed its first ship-to-ship methanol bunkering in Trinidad and Tobago, supplying the vessel Seymour Sun at the Port of Point Lisas. This operation, using the Uni-Tankers vessel Alsia Swan, demonstrates Methanex and Waterfront Shipping's commitment to promoting methanol as a safe and effective alternative marine fuel. The initiative marks a significant step toward supporting the maritime industry's shift to lower-emission fuels.

Eastern Pacific Shipping Selects Advanced Gas Injection Engines for New Container Ships

Date: August 28, 2024

Key Points:

Eastern Pacific Shipping has ordered 12 container ships equipped with MAN Energy Solutions' 8G95ME-GI gas injection engines. These engines offer high efficiency, operational stability, and low methane slip, and can operate on both bio-methane and synthetic natural gas, supporting decarbonization efforts. This decision aligns with EPS's strategy to invest in green technology and expand its fleet with dual-fuel capabilities.

Uniper and Liquid Wind Collaborate on E-Methanol Production Plant in Sweden

Date: August 29, 2024

Key Points:

Uniper and Liquid Wind have partnered to develop the NorthStarH2 project, a synthetic methanol plant in Östersund, Sweden. The plant aims to produce over 100,000 metric tons of synthetic methanol annually, primarily serving the shipping and chemical industries. This initiative is part of Sweden's push towards green energy solutions and highlights the role of e-fuels in reducing carbon emissions in multiple sectors.

COSCO Expands Green Fleet with 12 New Methanol-Powered Container Ships

Date: August 30, 2024

Key Points:

COSCO has ordered 12 methanol-fueled container ships, each with a capacity of 14,000 TEU, to be built in China. The vessels will feature air lubrication systems and wind deflectors for improved efficiency, supporting COSCO's goal to accelerate its green and low-carbon transition. The company is also converting existing ships to methanol dual-fuel propulsion and exploring biofuel projects to enhance its sustainable operations.

Greenpeace Equips New Vessel with Hydrogen and Renewable Power Systems

Date: August 30, 2024

Key Points:

Greenpeace is commissioning a new 75-meter vessel that incorporates a hydrogen power system, along with methanol capabilities, sails, solar panels, and battery packs. This combination of renewable energy technologies aims to minimize greenhouse gas emissions, aligning with Greenpeace's commitment to sustainable and eco-friendly marine operations. The ship, featuring both hydrogen and methanol as alternative fuel options, is set to be delivered by 2027, marking a significant advancement in the pursuit of greener shipping solutions.

 

Photo credit: Methanol Institute
Published: 9 September, 2024