OCI and Abu Dhabi Firms in Methanol Alliance
OCI, a Dutch producer of methanol and nitrogen products, has formed a strategic alliance with investors ADQ and Alpha Dhabi Holding. The Abu Dhabi-based firms will take a 15% stake in OCI’s methanol business for $375 million. The transaction is expected to be finalized this year.
“This strategic partnership further solidifies Abu Dhabi’s position in the global arena as a key player in the industrial and chemicals space. We are dedicated to bringing top-tier international companies to the UAE in line with Abu Dhabi’s vision and plans to create a world-class investment platform that will invest in and develop a portfolio of petrochemical manufacturing projects in Abu Dhabi,” said ADQ CEO Mohamed Hassan Alsuwaidi.
The aim of the alliance is to position the business for growth in hydrogen-based applications, including fuel. OCI said methanol is a key enabler of the hydrogen economy and will be key to decarbonizing the shipping industry.
The Amsterdam-based company added that it enjoys several strategic advantages as the only producer with facilities and distribution and storage capabilities in Europe and the US located near major inland demand centers or on major global shipping lanes next to key bunkering hubs.
The partnership follows the merger of OCI’s fertilizer assets with Abu Dhabi National Oil Company (ADNOC) in October 2019, forming Fertiglobe.
The fertilizer group is currently planning to develop an electrolyzer facility in Ain Sokhna, Egypt, to produce green hydrogen as feedstock for a 90,000 t/y green ammonia plant. Fertiglobe is working on the project with Norwegian renewable power producer Scatec and the Sovereign Fund of Egypt. A final investment decision is expected in 2022 with plant startup targeted for 2024.
Last month, Fertiglobe completed an initial public offering that raised more than $795 million.
Author: Elaine Burridge, Freelance Journalist
