OCI Global to supply X-Press Feeders with green methanol after Maersk success
Dutch producer and distributor of hydrogen-based products OCI Global will supply Singapore-based shipping company X-Press Feeders with OCI HyFuels green methanol for their new-build methanol dual-fueled common feeder ships.
OCI Global said that this was the first green methanol deal with a feeder container carrier, representing a crucial step in the decarbonization of the shipping chain, as the feeder industry plays an important role in supporting the ultimate carrier. The fuel will be provided in the Port of Rotterdam starting in 2024.
X-Press Feeders will be the first common feeder operator with methanol-fueled vessels on the water in Europe. With the latest order for six methanol dual-fuel newbuilds placed last month, X-Press Fedders now has 14 methanol powered-ships on order, with the first ones set for delivery in 2024.
Compared to other vessels that run on conventional fuels, the new dual-fuel vessels are expected to produce about 75% less emissions when operating on green methanol.
X-Press Feeders has set a target of net-zero emissions by 2050, aiming to be ‘The Greener Feeder Carrier Of Choice’.
The partnership between OCI and X-Press Feeders is targeting the creation of an end-to-end solution for global shipping companies in European ports and it serves as a strong validation for green methanol as a low-carbon choice for the maritime industry.
The company sees the deal as a reflection of the speed of growth of the sector and OCI HyFuels’ ability to meet the growing demand for green methanol from the marine sector. OCI Global believes the Port of Rotterdam would serve as a launch pad for the company as the plan is to expand its services to several other ports around the world.
Earlier this year OCI announced its partnership with Unibarge to retrofit the first methanol-powered bunker barge which will be deployed at the Port of Rotterdam.
“OCI will work with Unibarge to fuel X-Press Feeders’ feeder ships ensuring the decarbonization of another link in the chain,” the company said.
This is OCI HyFuels’ second green methanol sale in the marine sector in just under a month following the partnership with Maersk to fuel the world’s first green methanol-powered container vessel.
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“With growing public and regulatory pressure on the shipping industry, we need to find ways to decarbonize every link in the chain. 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 decarbonization solution for the maritime industry in Europe,” Bashir Lebada, CEO of OCI Methanol / OCI HyFuels said.
“This announcement is yet another milestone in an exciting year for OCI HyFuels and our leadership in the maritime fuels sector. As the world’s largest green methanol producer, we’re excited to be pioneering ways to reduce emissions across the supply chain.”
“X-Press Feeders’ partnership with OCI and the procurement of green methanol is 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,” Shmuel Yoskovitz, CEO of X-Press Feeders said.
“This is one more step to prove X-Press Feeders’ commitment to deliver tangible contributions to a more sustainable shipping industry. We continue to look out for future opportunities and partnerships to accelerate decarbonisation in the feeder business, to become the greener feeder carrier of choice.”