OCI Global to scale up green methanol and ammonia production for shipping

Dutch methanol producer OCI Global intends to raise its combined low- and zero-carbon ammonia and methanol output to 1.7 million mt/year by 2025, from its current combined capacity of 200,000 mt/year.

PHOTO: OCI Global's integrated ammonia and methanol production complex located in Beaumont, Texas in the US. OCI Global

OCI Global plans to double its bio-methanol production capacity to 400,000 mt/year by 2025 to meet the maritime sector’s rising demand. It also expects green methanol supply to tighten in the medium term due to a limited number of new greenfield projects, the company said in its financial report for the third quarter.

“Incremental demand from the maritime sector is expected to exceed seven million tons per year [7 million mt/year] from the mid-to-late 2020's, based on current orders for more than 275 new vessels,” OCI Global reported. This demand is estimated to rise further as more vessels are retrofitted to run on methanol.

“The green methanol will come from a mix of renewable feedstocks, including renewable natural gas (RNG), green hydrogen and other over the fence feedstock partnerships,” said OCI Global. Its first RNG plant is expected to start production in the first quarter of 2025.

Furthermore, the company also confirmed in September that it will add e-methanol to its product line.

“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,” OCI Methanol/HyFuels' chief executive Bashir Lebada had said.

Apart from methanol, OCI Global will also produce green and blue ammonia as bunker fuel. It has confirmed that its blue ammonia plant in Texas remains on track to begin production in 2025, with an initial capacity of 1.1 million mt/year.

The company claimed it will capture up to 95% of carbon dioxide (CO2) emissions released during grey ammonia production to produce blue ammonia at this plant. As a result, approximately 1.7 million mt/year of CO2 will be captured during the production of 1.1 million mt/year of blue ammonia, it said. Captured CO2 can be permanently stored deep underground or used as a feedstock in e-methanol production.

Moreover, it plans to build a green ammonia plant in Texas, with green hydrogen supplied by US-based New Fortress Energy. The plant is scheduled to begin operations in 2025, with an initial capacity of 80,000 mt/year. However, this capacity is slated to double to 160,000 mt/year by 2026, OCI Global said.

OCI Global’s chief executive Ahmed El-Hoshy noted earlier this year that “regulatory support for both ammonia and methanol in shipping, such as the EU’s FuelEU maritime regulation and the latest IMO strategy [are] bolstering the value of low carbon and green methanol and ammonia relative to fossil fuels.”

By Konica Bhatt

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