OCI partners with investors on hydrogen, methanol

Netherlands-based OCI said today its methanol business will receive $375mn investment from two Mideast Gulf companies, which it said will allow for hydrogen-based growth.

Abu Dhabi's ADQ and Alpha Dhabi Holding will get a 15pc stake in the OCI Methanol Group, which will be incorporated in the Mideast Gulf country.

OCI said the alliance will allow for growth in hydrogen-based applications, with a focus will be on methanol as a future fuel with hydrogen as the primary feedstock, noting that methanol will be key to decarbonising the marine industry.

"With methanol as the leading clean fuel for the shipping industry and other applications, we believe we are best positioned to execute growth initiatives and capitalize on the growing demand for clean hydrogen in downstream markets," said OCI chairman Nassef Sawiris.

OCI said the transaction is expected to be finalised this year.

OCI Methanol has methanol units and distribution and storage capabilities in the US and Europe. It is also a producer of bio-methanol.

By Victoria Baghdjian