Dutch methanol and ammonia producer OCI Global has signed up to supply green methanol to feeder ship operator X-Press Feeders in Europe from 2024.
OCI Hyfuels will bunker green methanol to X-Press Feeders’ upcoming dual-fuel newbuildings in the Port of Rotterdam.
The company gave no details about the volumes agreed under the deal, its time span or the price paid for the green methanol.
OCI Global described it as a milestone agreement — the first green methanol deal with a feeder container carrier — and said it represents a crucial step in the decarbonisation of the shipping chain.
“X-Press Feeders will be the first common feeder operator with methanol-fuelled vessels on the water in Europe,” the Dutch company said.
“The partnership creates an end-to-end green fuels solution for global shipping companies in European ports, supporting the decarbonisation of 35% to 40% of X-Press Feeders’ European fleet.”
Earlier this year, the fuel supplier and producer partnered with Unibarge to retrofit the first methanol-powered bunker barge, which will be deployed at the Port of Rotterdam.
OCI said this is OCI Hyfuels’ second green methanol supply agreement in under a month, which it said highlights the “rapid growth” of its green bunker division.
It follows the company’s deal with AP Moller-Maersk to fuel the world’s first green methanol-powered container ship, which is currently on its maiden voyage to its naming ceremony in Copenhagen.
OCI said this reflects the speed of growth of the sector and OCI HyFuels’ ability to support the growing demand for green methanol from the marine sector, starting in Rotterdam with plans to expand to several other ports around the world.
OCI Methanol/OCI HyFuels chief executive Bashir Lebada said: “With growing public and regulatory pressure on the shipping industry, we need to find ways to decarbonise every link in the chain.
Green corridor
“Through our new partnership with X-Press Feeders to supply them with OCI Hyfuels green methanol, and our existing collaboration with Unibarge to deliver the fuel via their green methanol bunker barge, we are creating an end-to-end decarbonisation solution for the maritime industry in Europe.”
X-Press Feeders chief executive Shmuel Yoskovitz described the company’s procurement of green methanol as “the next logical decision in our journey towards our decarbonisation goal of net zero 2050”.
“In Q2 2024, we will receive our first of 14 dual-fuel methanol vessels. The advance procurement of green methanol allows us to offer the main line operators and interested European beneficial cargo owners the ability to deliver an intra-European green corridor by mid-2024.”
