OCI Global to double its US green methanol production capacity

Methanol producer OCI Global Methanol plans to double the green methanol production capacity at its Beaumont plant to 400,000 mt/year.

PHOTO: OCI Beaumont is an integrated methanol and ammonia production facility located on the Gulf Coast near Beaumont, Texas in the US. OCI Global

“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.

OCI Global’s first RNG plant is expected to start production in the first quarter of 2025.

In addition to bio-methanol, OCI Methanol/HyFuels' chief executive Bashir Lebada confirmed that the company will add e-methanol to its portfolio.

“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,” he said.

Capacity expansion has been driven by growing demand from shipping, among other sectors, the company announced.

OCI has projected "incremental” increases in global methanol demand, and for demand to reach more than 6 million mt/year by 2028. This includes expected demand from the roughly 225 dual-fuel methanol vessels now on order, the company said.

This is an upward revision from its 4 million mt/year prediction in June.

Meanwhile, OCI Global chief executive Ahmed El-Hoshy confirmed that the company will also supply ammonia to the shipping sector.

“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,” he said.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online