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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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Methanol

South Korea achieves milestone with first SIMOPS methanol bunkering in Busan

Hyodong Shipping’s bunkering vessel “Hyodong Chemi” supplied 3,000 mt of methanol to containership “Antonia Maersk” at Busan New Port Terminal 2 (PNC) during cargo unloading.

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South Korea achieves milestone with first SIMOPS methanol bunkering in Busan

South Korea successfully conducted its first ever Simultaneous Operations (SIMOPs) of ship-to-ship methanol bunkering at Busan New Port on 4 October, according to Korean Register (KR) on Thursday (30 October). 

KR said this groundbreaking achievement marks a crucial advancement in the nation's commitment to developing a sustainable ship fuel supply chain.

In an 11-hour bunkering operation, Hyodong Shipping’s bunkering vessel Hyodong Chemi supplied 3,000 metric tonnes (mt) of methanol to containership Antonia Maersk at Busan New Port Terminal 2(PNC) during cargo unloading. 

This follows the successful LNG bunkering SIMOPs at Busan New Port in August. 

The Ministry of Oceans and Fisheries (MOF) spearheaded this initiative as part of its plan to build an Eco-friendly Ship Fuel Supply Chain, announced in November 2023. The ministry has been diligently working on securing bunkering vessels, developing port infrastructure, and standardising bunkering procedures.

Busan Port Authority (BPA) supported the methanol bunkering demonstration project, offering exemptions on port facility usage fees and coordinating with relevant agencies to review safety protocols through an inter-agency consultative body.

Korean Register (KR) has played a pivotal role in providing technical support for the development of a methanol bunkering safety system. KR's contributions include developing standard operating procedures, defining safety management zones, and creating guidance for self-safety management plans.

This accomplishment is expected to significantly enhance the competitiveness of South Korean ports in the growing market for eco-friendly shipping. The successful implementation of SIMOPs, which allows for simultaneous cargo operations and supply of green fuel, is particularly attractive to shipping companies aiming to reduce costs and improve efficiency.  

KANG Joonsuk, CEO & President of BPA, said: “This successful demonstration marks a monumental achievement, showing that Busan Port is fully capable of supplying methanol. We plan to enhance Busan Port’s global competitiveness by developing infrastructure and advancing technology to expand eco-friendly fuel bunkering, positioning it as a leading green port on the world stage.”  

LEE Hyungchul, Chairman & CEO of KR, said: “As the maritime industry continues to seek greener alternatives, South Korea is trying to position itself at the forefront of sustainable shipping practices. KR will continue to provide full support for technical cooperation to ensure safe and successful green fuel bunkering operations.”

Related: South Korea achieves first-ever SIMOPS LNG bunkering operation of bulk carrier 

Photo credit: Korean Register
Published: 1 November, 2024

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Methanol

GENA Solutions: Total renewable and low-carbon methanol project pipeline rises from 37.5 to 38.6 Mt by 2030

Information shared by the Methanol Institute meant to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

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GENA Solutions: Total renewable and low-carbon methanol project pipeline rises from 37.5 to 38.6 Mt by 2030

The Methanol Institute recently shared with Manifold Times the renewable and low-carbon methanol project pipeline October 2024 database release produced by Finland-based GENA Solutions Oy (Green Energy Analytics).

Information from the release is meant to provide the bunkering publication’s readers with insight on renewable methanol availability, and to assist the maritime industry in the adoption of methanol as a mainstream marine fuel heading into IMO 2030/2050.

Key highlights of the October 2024 release are as follows:

  •   The renewable methanol project pipeline increased from 29.3 Mt in September to 30.5 Mt in October (+1.2 Mt). The total renewable and low-carbon methanol project pipeline grew from 37.5 to 38.6 Mt.
  •   As of October 2024, GENA tracks 108 e-methanol plants and projects with total capacity of 18.0 Mt (+1.0 Mt), 75 biomethanol plants and projects with total capacity of 12.5 Mt (+0.2 Mt), and 14 low-carbon methanol plants and projects with total capacity of 8.1 Mt.
  •   Six projects were added in the October release: three in China, two in Europe and one in Brazil. One frozen project was excluded from Project Navigator.
  •   One biomethanol project has started construction during the last month. Currently 1.9 Mt of renewable methanol projects are under construction.
  •   From February to October 2024, the renewable methanol project pipeline increased from 19.7 Mt to 30.5 Mt, an increase of 10.8 Mt (+55%).
  •   The likely range of renewable methanol capacity by 2030 is estimated at 7-14 Mt (23-46% of the project pipeline).

Renewable methanol project pipeline

Renewable methanol by region (1)

Renewable methanol by feedstock (2)

Methanol by status (2)

Renewable methanol scenarios (3)

 

Photo credits: GENA Solutions
Published: 1 November, 2024

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Alternative Fuels

Nador West Med set to become bunkering hub for CMA CGM DF gas, methanol vessels

CMA CGM and Marsa Maroc will equip and operate half of Nador West Med container terminal for 25 years, which is also expected to become a bunkering hub for new synthetic energies in Mediterranean.

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Nador West Med set to become bunkering hub for CMA CG DF gas, methanol vessels

French shipping giant CMA CGM on Tuesday (29 October) signed a joint venture agreement with Morocco port terminal management company Marsa Maroc to equip and operate for 25 years a 750-meter section of quay and 35 hectares of yard within the Nador West Med container terminal. 

The terminal is also expected to be a maritime bunkering hub for new synthetic energies —e-methane and e-methanol— in the Mediterranean, notably for the CMA CGM Group's fleet of dual-fuel gas and methanol vessels.

This joint venture, in which CMA CGM and Marsa Maroc will hold 49% and 51% respectively, will equip and operate 50% of the Nador West Med container terminal, i.e. 35 hectares of container yard and 750 meters of quay with a maximum draught of 18 meters. 

Already present in Morocco in the Eurogate Tangiers and Casablanca container terminals (via SOMAPORT), the CMA CGM Group is pursuing with this strategic and operational agreement its development as a major player in the country's supply chain.

Within the framework of a 25-year sub-concession, the CMA CGM Group and Marsa Maroc will make major investments totaling USD 280 million, with the aim of achieving an annual terminal output of 1.2 million TEUs. 

Capable of handling the world's largest container ships with a maximum draught of 18 meters, the terminal will eventually be equipped with 8 transshipment cranes, compared with 6 at present, and 24 electric RTGs, compared with 15 at present. 

Ideally located in the strategic Gibraltar zone, in the Bay of Betoya, on the Oued Kert estuary, the port of “Nador West Med” has significant assets to complement the CMA CGM Group's terminals in the strategic Western Mediterranean zone. 

Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said: "Morocco is positioning itself as a strategic logistics and port hub with strong growth potential.”

“The partnership we are entering into with Marsa Maroc marks a key step for the CMA CGM Group, strengthening our presence through the Nador West Med container terminal. Our ambition is to support the country's development, particularly in the forward-looking sectors of logistics and alternative energies.”

 

Photo credit: CMA CGM
Published: 30 October 2024

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