OCI Global’s Ambitious Plan to Double Green Methanol Capacity in US

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Credit: OCI Global

OCI will scale capacity by 200,000 tons at its facility in Beaumont, Texas. 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

Sustainability Initiatives

OCI Global, the world’s largest green methanol producer, is planning to double its green methanol production capacity to around 400,000 metric tons per year.

The company intends to secure supply agreements for renewable natural gas (RNG) exceeding 15,000 mmbtu per day and has acquired waste and development rights from the City of Beaumont for its first upstream RNG production facility, set to begin operation in Q1 2025.

Green methanol

Green methanol is a crucial component in reducing carbon dioxide emissions and decarbonizing hard-to-abate sectors, playing a vital role in cleaner industries. OCI’s current capacity for green methanol production is 200,000 metric tons, with various applications including road fuels, industrial processes, and shipping.

OCI foresees substantial growth in the green methanol market, with a projected incremental demand of over 6 million tonnes by 2028, primarily driven by its adoption as a shipping fuel.

Statements from Officials

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 realization 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.”

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Source: OCI Global

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