OCI Global doubles capacity as shipping industry seeks green methanol

OCI Global the world's biggest producer of green methanol, plans to double the production capacity at its Texas facility to 400,000 metric tons per year, said Hydrocarbonprocessing.

The Dutch green fuel-maker grows its capacity in response to a huge demand for green methanol from carbon emission-high industries like shipping, an industry responsible for around 3% of global emissions each year.

"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," Bashir Lebada, CEO of OCI Methanol/HyFuels said in a statement.

Green methanol is produced either from biomass or captured carbon and hydrogen from renewable power sources.
Demand for green methanol will exceed 6 million tons by 2028, OCI projects, due to the adoption of green methanol as a shipping fuel.

Sailing on green methanol can reduce carbon emissions from container vessels by 60% to 95% compared to conventional fossil fuels.

The number of methanol-fueled vessels is expected to exceed 200 by 2028, up from 30 this year, consultancy DNV forecasts as the shipping industry hopes to achieve a goal of net zero emissions by 2050.

OCI supplied green methanol for the maiden journey of the first-ever Maersk-owned green methanol-fueled container vessel sailing from South Korea to Denmark via the Suez Canal this summer.

We remind, Russia is shipping its first crude oil cargo to Brazil, as it seeks to diversify its list of buyers, which has been drastically limited by U.S. and EU sanctions. Russia has been heavily relying on India and China as main buyers of its crude after European embargo and price cap policies were imposed in December last year after Russia's action in Ukraine that Moscow calls a special military operation.

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Belarusian President Alexander Lukashenko told Russian President Vladimir Putin on Friday that Belarus has recently supplied 60,000 tons of diesel and 60,000 tons of petrol to Russia and is ready to further increase shipments, Reuters said.

Lukashenko is currently on a visit to Russia, parts of which are currently experiencing acute diesel shortages.

As translated by the news agency Reuters, the Belarusian leader said: "I would like to inform you about the...not exactly interruptions, but rather some difficulties with the fuel market. We have stabilised the situation, supplied as much (fuel) as the Russian Federation needed, as much as the government asked for."

"I think, 60,000 (tonnes) each of diesel and petrol. And we stabilised the situation in our common markets. If it becomes necessary to further reduce supplies to foreign markets and increase them for domestic consumption, this is not a problem. We resolve all these issues, both small and large," he added.

We remind, Russia's Sakhalin Energy, which produces liquefied natural gas and oil, has fully resumed production following maintenance. The company has said it planned maintenance in July without providing a timeframe. Sakhalin Energy's Sakhalin-2 operating company was transformed into a Russian entity via a presidential decree amid Western sanctions against Moscow over its actions in Ukraine.

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China's oil refinery throughput in August rose to a record, data showed on Friday, as processors in the world's second-largest crude consumer kept run rates high to meet summer travel demand and capitalize on strengthening export margins, said Reuters.

Total refinery throughput was a record 64.69 million metric tons last month, data from the National Bureau of Statistics (NBS) showed, up 19.6% from a year ago, the fastest annual growth since March 2021.

That is the equivalent of 15.23 million barrels per day (bpd), also a record on a daily basis and up from the 12.64 million bpd processed a year earlier when extensive refiners to cut runs. August throughput was also up from July's 14.87 million bpd. Year-to-date throughput gained 11.9% from a year earlier to 491.4 million tons, or 14.76 million bpd.

Domestic demand for gasoline and kerosene over the August vacation season was a key driver of domestic fuel consumption, with travel levels likely to be have been further boosted by "revenge travel" after the pandemic, analysts said ahead of the data.

China's aviation regulator said on Friday that air passenger numbers in August nearly doubled from a year earlier, reaching a historical high of 63.96 million.

Additionally, refiners have been incentivized by additional government fuel export quotas to maintain higher runs to ship fuel overseas and cash-in on stronger profit margins from processing crude amid tighter regional supplies of diesel fuel.

Data from China's customs administration last week showed overall refined fuel exports continued to grow last month, rising 11% from the previous month and 23.3% year-on-year to 5.89 million tons.

Regional refining margins improved last month, averaging $12.60 per barrel versus around $6.60 per barrel in July. The NBS data on Friday also showed China's domestic crude oil production in August gained 3.1% from a year earlier to 17.47 million metric tons, or 4.11 million bpd. The year-to-date volume rose 2.1% from a year earlier to 139.85 million tons, or 4.2 million bpd.

Natural gas production last month rose 6.3% from a year earlier to 18.1 billion cubic meters (bcm), the NBS said.

We remind, Russia is shipping its first crude oil cargo to Brazil, as it seeks to diversify its list of buyers, which has been drastically limited by U.S. and EU sanctions. Russia has been heavily relying on India and China as main buyers of its crude after European embargo and price cap policies were imposed in December last year after Russia's action in Ukraine that Moscow calls a special military operation.

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India is not planning to levy any new tax on diesel vehicles, the country's transport minister told news channel CNBC-TV18 on Thursday, two days after he warned automakers to reduce diesel production or face higher taxation, said Hydrocarbonprocessing.

"I am not against diesel and neither are we going to levy any new tax on diesel vehicles," Nitin Gadkari, the federal road transport minister, told the channel.

Gadkari's comments were a marked step back from his speech at an auto industry conference on Tuesday when he warned carmakers to reduce production of diesel vehicles or face higher taxation, causing shares of automakers like automakers Mahindra and Mahindra, Tata Motors and commercial vehicle maker, Ashok Leyland to drop between 2.2% and 2.5%.

In the speech, Gadkari had said he would ask the finance minister for an "additional 10%" goods and services tax on diesel vehicles to tackle problems related to pollution. India currently imposes a 28% tax on diesel vehicles and an additional tax called a cess is levied depending on the engine capacity.

We remind, Russia is shipping its first crude oil cargo to Brazil, as it seeks to diversify its list of buyers, which has been drastically limited by U.S. and EU sanctions. Russia has been heavily relying on India and China as main buyers of its crude after European embargo and price cap policies were imposed in December last year after Russia's action in Ukraine that Moscow calls a special military operation.

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Brenntag started operations of its new personal care Innovation & Application Center in Lille, France, said Chemanager-online.

The facility, which is located in Arteparc, the regions first business park fully based on circular economy and renewable energies, will provide Brenntag’s customers and suppliers with concepts and prototype development, customized formulation support, technical solutions and stability studies for a broad range of applications.

Brenntag said that it chose Lille for the new Innovation & Application Center due to its proximity to many suppliers and customers in the personal care industry in the region.

According to Brenntag, the company has also very strong links to the university of Lille and cooperates with the Chevreul Institute, which aims to develop research collaborations and services in the field of chemistry and materials.

“The opening of the Lille Center is a further step to execute Brenntag’s ‘Strategy to Win’ by building capabilities and offering innovative services to the regional and global personal care industry. Brenntag Specialties acts as an important link with our customers and suppliers to bring innovation closer to the marketplace. The new center is a great addition to the strong network of now already 18 Personal Care / HI&I Innovation & Application Centres globally and four in the EMEA region,” commented Michael Wilkop, President Personal Care / HI&I Brenntag Specialties EMEA.

“Lille is an ideal location for our Innovation & Application Center, given its thriving ecosystem of R&D partners, technology providers and talent,” said Francois Bouton, director Innovation & Application PC / HI&I Brenntag Specialties EMEA.

We remind, Brenntag has signed an agreement to acquire the operating business of Chemgrit cosmetics (Pty) Ltd., headquartered in Johannesburg, South Africa. The company, part of the larger Chemgrit chemicals group, is an independent specialty chemical distributor in South Africa with a focus on personal care and cleaning markets.

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