OCI Global to expand green NH3 and MeOH production

The company has announced plans to begin to produce green ammonia at its ammonia plant in Beaumont, Texas, following the agreement of a green hydrogen offtake agreement from a local producer. The agreement will allow OCI Global to ramp up production of green ammonia from 80,000 tonnes in 2025 to 160,000 tonnes per year in 2026.

The agreement follows a competitive tendering process. OCI Global’s green hydrogen supplier, New Fortress Energy (NFE) is installing a 100MW capacity electrolyser system to expand its green hydrogen production capacity. 

OCI Global began production of hydrogen-based green ammonia earlier in 2023 at its Egypt Green facility, which is owned by Fertiglobe, a joint venture between OCI Global and ADNOC. OCI Global has existing plans to begin large-scale blue ammonia production in 2025, from a project in Texas, in partnership with Linde. The new 1.1mn tonnes per year ammonia production site in Beaumont Texas has been developed so it can use green hydrogen as a feedstock in the future to further increase OCI’s green ammonia production capabilities.

Methanol production expansion

The green ammonia production capacity expansion announcement followed shortly after OCI Global announced plans to increase green methanol production capacity in the United States to 400,000 tonnes per year on 13 September.  

The production expansion plans include entering into supply agreements for bio-gas exceeding 15,000 mmbtu per day. The agreement represents OCI’s first upstream Renewable Natural Gas production facility. Production is slated to start in Q1 2025.  OCI notes that the deal will increase its existing 200,000 tonne per year green methanol.

While OCI notes strong demand from the transportation sector, and the petrochemicals sector, it specifically identified marine fuel as a growth end-use market. OCI forecasts that demand for green methanol will expand by over 6 million tonnes per year by 2028, citing the 225 dual-fuelled methanol vessels now on order as evidence of surging demand.