OCI to double methanol capacity at US plant

OCI to double methanol capacity at US plant

Dutch company OCI Global says it will double its green methanol production capacity at its facility in Beaumont, Texas, US, to 400,000 tonnes/year ahead of 2025, since demand for green methanol from high-emissions industries will grow by more than 6 million tonnes by 2028.

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, according to OCI. The product will principally be used as a fuel blend in place of petrol, used for shipping and heavy industry.

The scale-up at OCI’s facility will include entering into new supply agreements for RNG exceeding 15,000 MMBtu per day. Renewable natural gas, or biogas, is produced from the decomposition of organic matter. It can be transported and used in much the same way as conventional natural gas.

OCI plans to produce the biogas from a decomposing landfill, but the company is yet to secure waste and development rights from the City of Beaumont offices.

This facility will be OCI’s first upstream RNG production facility, with fabrication of the gas beginning in the first quarter of 2025.

“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,” said Ahmed El-Hoshy, CEO of OCI, in a statement.