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OCI Global to double green methanol capacity in US to meet demand from industries

Firm will increase capacity to 400,000 mt per year in response to growing demand for green methanol from numerous high emissions industries, including road transport, shipping and industrial.

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Green methanol producer OCI Global (OCI) on Wednesday (13 September) announced plans to double its green methanol production capacity to approximately 400,000 metric tonnes (mt) per year in response to the growing demand for green methanol from numerous high emissions industries, including road transport, shipping and industrial.

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. As well as reducing carbon dioxide emissions, obtaining biogas from landfill has the benefit of using methane – which over a 20-year period, has a global warming potential that is 84 times more potent than carbon dioxide – that would otherwise escape and accelerate global warming.

A critical manufacturing building block, green methanol can effectively decarbonize traditionally hard-to-abate sectors by significantly reducing the carbon footprint and emissions across a range of key value chains to power cleaner industries.

OCI currently has capacity to produce up to 200 thousand metric tons of green methanol. Offtakers include the road fuels market, where it is used as a fuel-blend to reduce emissions from petrol; as a building block in a range of industrial applications; and most recently, as a fuel for shipping.

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: “We continue to see more and more realisation that methanol is the transportation sector’s most viable solution and the easiest way to transport and use renewable hydrogen today.”

“It is a solution that is available now and our focus is on continuing to scale technologies whether through our projects or our supply partners, to ensure that our capacities continue to grow alongside demand. We are seeing increasing pull from road fuel markets due to the delay in EV adoption and charging station build-out and while marine demand has been growing at a very fast pace, we have yet to see the impact of retrofits which should end up being a larger segment than new-builds.

“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.”

Roy West, Mayor of Beaumont, said: “We’re pleased to partner with OCI on this exciting project, which further develops our long-term relationship with OCI as an industrial employer in Beaumont. This joint project will create societal and environmental benefits, including the reduction of greenhouse gas emissions and reduction in other air emissions resulting from landfill operations.”

“This agreement is considered a win-win agreement for the city and OCI, as it allows the City to generate an additional revenue stream from its landfill operations while OCI will be able to use the renewable natural gas for its business.”

Photo credit: OCI Global
Published: 15 September, 2023

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Alternative Fuels

Ammonia, methanol bunkering infrastructures among 39 projects to receive EU funding

Both projects aim to deploy a ship-to-ship bunkering system at the ports of Huelva and Algeciras respectively and include a 7500 m3 bunkering vessel each.

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Guillaume Périgois on Unsplash

Editor's Note [12 February 2025] : Article updated on CEPSA 

Two projects involving ammonia and methanol bunkering infrastructures in the ports of Huelva and Algeciras in Spain were among 39 projects to receive funding under the first cut-off deadline of 2024-2025 Alternative Fuels Infrastructure Facility (AFIF) of the Connecting Europe Facility (CEF), according to the European Commission recently. 

The first ammonia bunkering infrastructure will be in Algecirasa as part of the Andalusian Green Hydrogen Valley. The project aims to deploy a ship-to-ship ammonia bunkering system in the port of Algeciras. 

It includes a 7500 m3 ammonia bunkering vessel, an on-shore ship loading system and the piping infrastructure for the transport of ammonia from the production site to the loading dock.  

Meanwhile, the first methanol bunkering infrastructure will be in Huelva, also as part of the Andalusian Green Hydrogen Valley. The project aims to deploy a ship-to-ship methanol bunkering system in the port of Algeciras. 

It includes a 7500 m3 methanol bunkering vessel, an on shore ship loading system and the piping infrastructure for the transport of methanol from the production site to the loading dock.

The coordinator for both bunkering projects is Spanish bunker fuel supplier CEPSA, which has been renamed to Moeve in October last year. 

The European Commission said the EU is allocating nearly EUR 422 million to the 39 projects that will deploy alternative fuels supply infrastructure along the trans-European transport network (TEN-T), contributing to decarbonisation. 

With this selection, the AFIF will support other projects including approximately 2,500 electric recharging points for light-duty vehicles and 2,400 for heavy-duty vehicles along the European TEN-T road network, 35 hydrogen refuelling stations for cars, trucks and buses, the electrification of ground handling services in eight airports and the greening of nine ports.

Following EU Member States’ approval of the selected projects on 4 February, the European Commission will adopt the award decision in the coming months, after which the results will become definitive. 

The European Climate, Infrastructure and Environment Executive Agency (CINEA) has started the preparation of the grant agreements with the beneficiaries of successful projects.

Note: The full list of successful projects can be viewed here.

 

Photo credit: Guillaume Périgois on Unsplash
Published: 11 February, 2025

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Alternative Fuels

Meyer Werft and partners kick off green methanol fuel cells project for cruise ship

Project’s core goal is for DLR to create large scale fuel cell stacks and Freudenberg e-Power Systems to create fuel cell systems that can be retrofitted on existing cruise ships.

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Meyer Werft and partners kick off green methanol fuel cells project for cruise ship

German shipbuilder Meyer Werft recently said it launched the zero4cruise project at Freudenberg e-Power Systems in Munich, together with project partners Freudenberg e-Power Systems and German Aerospace Center (DLR).

Building on previous developments, zero4cruise focuses on fuel cell technology powered by green methanol, according to the company.

“The project addresses a critical challenge for the maritime industry: developing climate-friendly and low emission energy systems for cruise ships,” it said in a social media post. 

The project’s core goal is for DLR to create large scale fuel cell stacks and Freudenberg e-Power Systems to create fuel cell systems that can be retrofitted on existing ships. 

“This retrofit approach is key to accelerating the decarbonisation of the cruise sector, which is vital given the long operational lifespans of vessels,” it said. 

The hybrid energy system will combine PEM fuel cells with a methanol reformer and battery systems to optimize efficiency and ensure ships can operate carbon-neutral in ports and coastal areas.

“zero4cruise is not just about new technologies—it’s about creating practical, scalable solutions that can transform existing fleets into sustainable vessels, ensuring that ships in harbours and coastal areas can operate with low emissions,” Meyer Werft added.

 

Photo credit: Meyer Werft
Published: 6 February, 2025

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Alternative Fuels

PowerCell: Hydrogen fuel cells with methanol reformer tech offers solution to net-zero shipping

Fuel cells with methanol reformer tech can convert methanol into hydrogen onboard, producing energy from methanol 30% more efficiently than internal combustion engines, says Dr. Andreas Bodén.

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PowerCell: Hydrogen fuel cells with methanol reformer tech offers solution to net-zero shipping

Dr. Andreas Bodén, Senior Vice President and Chief Technology Officer of fuel cell systems developer PowerCell shares with Manifold Times the potential of hydrogen fuel cells with methanol reformer technology as a solution in maritime industry’s transition towards net-zero-emission: 

 As the maritime industry transitions towards net-zero emissions, renewable fuels have been at the forefront in advancing sustainable shipping. According to Hydrogen Europe’s “Long-term outlook on zero-emission mobility” survey, e-fuels hold the most promise for various ship types, including ferries, cruise ships, and container vessels. 

Among these e-fuel options, methanol reformer technology is emerging as a potential solution in this transition. This technology can convert methanol into hydrogen onboard through steam reforming, enabling proton-exchange membrane (PEM) fuel cells with 30% greater efficiency than internal combustion engines, paving the way for compact, high-power, and net-zero energy solutions without relying on pure hydrogen infrastructure.

Hydrogen, often dubbed the building block of the energy transition, emerges as a viable option for certain vessels with fixed or shorter routes, such as passenger ferries and service vessels. However, its practicality for wider-scale use in deep-sea shipping has significant challenges related to supply of green molecules and energy density, as well as storage, transport, and handling.

Methanol addresses these challenges by serving as an easy and efficient liquid hydrogen carrier. It is easy to handle, store, and transport at ambient temperature and pressure. By serving as a hydrogen carrier, methanol overcomes the logistical obstacles of hydrogen fuel while still enabling the use of high-efficiency fuel cells. This symbiosis positions methanol and fuel cells as key players in scaling renewable fuels for the maritime industry. 

PowerCell: Hydrogen fuel cells with methanol reformer tech offers solution to net-zero shipping

Dr. Andreas Bodén, Senior Vice President and Chief Technology Officer of PowerCell

Efficient use of scarce resources

Green fuels like renewable methanol face significant hurdles, from scaling production to securing offtake agreements. Marine economist Dr. Martin Stopford warns that shipping might lag behind other sectors, such as road transport and chemicals, in accessing renewable fuels. At the same time, the Methanol Institute tracks nearly 90 green methanol projects aiming to produce 9 million tons annually by 2027, some of which will benefit the marine industry.

Despite the level of optimism, renewable methanol will be a scarce and a costly resource for the foreseeable future. Lloyd’s Register estimates its initial cost at around $1,000 per ton, which is significantly higher than conventional fuels. Shipowners must therefore maximise efficiency, reducing the volume of renewable fuel required and mitigating operating expenses.

Methanol’s energy density surpasses hydrogen and ammonia but falls short of hydrocarbon fuels. Lloyd’s Register highlights that ship operators would require two and a half times more methanol than traditional fuel oil for equivalent energy output. This disparity underscores the necessity of adopting more efficient propulsion systems.

Fuel cells: A pathway to efficiency

Fuel cells with methanol reformer technology offer a solution. These systems can convert methanol into hydrogen onboard through steam reforming, producing energy from methanol 30% more efficiently than internal combustion engines. PEM fuel cells which can use this technology stand out for their compact size, efficiency, and high-power density. These technologies enable net-zero energy generation without the need for pure hydrogen infrastructure.

For smaller vessels like ferries and towboats, fuel cells can serve as the primary propulsion system, reducing renewable methanol consumption by up to 30%. Larger ships, such as container vessels, can use fuel cells to power auxiliary engines, eliminating emissions from fossil-fuel generators during port operations. Renewable methanol further curbs nitrogen oxide (NOx) emissions by up to 80%, while eliminating sulphur oxide (SOx) and particulate matter (PM) emissions. These benefits can be enhanced when using an internal combustion engine (ICE) or a fuel cell with reformer technology specifically designed to reduce local pollutants. 

Beyond methanol, fuel cell reformer technology can be developed for ammonia. This adaptability offers a pathway to the efficient use of ammonia as a future zero-carbon solution. This flexibility also allows shipowners to adopt renewable methanol now and transition to other fuels as they become viable.

Balancing sustainability and efficiency

The IMO’s revised GHG strategy targets net-zero emissions for international shipping by 2050, with interim milestones for 2030 and 2040. Achieving these goals requires efficient use of renewable fuels and innovative propulsion systems. PowerCell’s Methanol to Power Solution, M2Power 250, exemplifies the potential to enhance fuel efficiency and reduce operational costs. 

As the maritime industry is responsible for 3% of global GHG emissions, fuel cells with methanol reformers represent a practical solution. Whether powering smaller vessels or auxiliary systems on deep-sea ships, this technology bridges the gap between the current fuel limitations and the future of sustainable shipping. 

The marine industry must embrace innovative solutions to achieve net-zero emissions. Fuel cell technology, with its unparalleled efficiency and fuel optionality, positions many shipowners best to navigate the challenges of the energy transition. 

 

Photo credit: PowerCell
Published: 6 February, 2025

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