In a groundbreaking event at the Port of Ulsan, Korea, OCI Global successfully completed the world’s first bunkering of a green methanol-fuelled container ship with its OCI HyFuels ISCC certified green methanol. This accomplishment marks the beginning of the ship’s inaugural voyage, which will see it sail from Ulsan to Copenhagen, making stops in Singapore, Egypt, and Rotterdam for bunkering along the way.
OCI Global’s Leap into Green Methanol Bunkering
As the world grapples with climate change, the maritime industry is increasingly turning to alternative fuels to reduce greenhouse gas emissions. OCI Global, a leading global producer of nitrogen fertilizers and methanol, has positioned itself at the forefront of this shift by becoming the first commercial bunker operator of green methanol on a global scale.
Ahmed El-Hoshy, CEO of OCI Global, said, “We are proud to be part of this historic milestone in the maritime industry’s transition towards more sustainable fuel solutions. Our green methanol offers a viable pathway to decarbonization, and we are committed to supporting our customers in achieving their environmental goals.”
A Promising Future for Green Methanol
Green methanol, produced from renewable sources, holds significant potential as a clean-burning marine fuel. It can reduce greenhouse gas emissions by up to 95% compared to traditional bunker fuels and is compatible with existing engine technology.
OCI Global’s Financial Strategy
In recent financial news, OCI Global reported a 48% YoY decrease in total FY 2023 revenues to $5,022 million and a 69% YoY decrease in total FY 2023 adjusted EBITDA to $1,214 million. These declines were primarily due to lower nitrogen pricing globally.
In December 2023, OCI entered into binding agreements for the sale of equity interests in Iowa Fertilizer Company LLC and Fertiglobe for a total consideration of $7.22 billion. The company plans to use the proceeds from these transactions to significantly reduce holding company debt to a net cash position by year-end 2024 and make a capital distribution of at least $3 billion to shareholders.
OCI has temporarily suspended its semi-annual cash distribution due to recent strategic activity and anticipated extraordinary distributions of capital to shareholders in FY 2024.
As OCI Global navigates the evolving landscape of the maritime industry and continues its pursuit of sustainable solutions, it remains focused on delivering value to its stakeholders and contributing to a more environmentally responsible future.
