Hapag-Lloyd eyes biomethanol from Louisiana plant
German shipping firm Hapag-Lloyd could potentially purchase green methanol from US-based Southern Energy Renewables' upcoming plant in Louisiana, US.
IMAGE: A Hapag-Lloyd container ship. Hapag-Lloyd
Southern Energy Renewables plans to build a biomethanol plant in St. Charles Parish, Louisiana.
A final investment decision is planned by 2027, with pilot production scheduled for 2029. The plant will use biomass feedstock including crop waste, forest residues and municipal solid waste, according to Southern Energy's website.
The facility is expected to have an initial capacity of 220,000 mt/year of biomethanol by 2031, which will eventually be raised to 2.3 million mt/year.
The agreement with Hapag-Lloyd sets the framework for a long-term offtake agreement for green methanol from the facility, “subject to the achievement of key milestones,” Southern Energy said.
Hapag-Lloyd will also potentially invest in future facilities, it added.
The German carrier has ordered eight methanol dual-fuel container ships for delivery between 2028-2029 and is retrofitting five existing vessels for methanol propulsion by next year.
It has also signed an offtake agreement with China’s Goldwind to secure 250,000 mt/year of green methanol – a blend of bio- and e-methanol – with fuel deliveries expected to begin this year.
By Konica Bhatt
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