Tanker owner Hafnia has invested in a US$10M joint venture with an unnamed partner in methanol production facility Northwest Innovation Works (NWIW) in the port of Kalama in the US state of Washington
NWIW is developing a 3.6M tonnes per annum methanol production and export facility at the port of Kalama in southwest Washington, USA. The plant will convert regionally sourced natural gas to methanol, which will then be transported via ship – the equivalent of an MR cargo every four days – for use in dedicated materials pathway production in Asia.
Hafnia will order new methanol-powered dual-fuel tankers tied to 19-year charters to transport one-third of the methanol volume produced by the plant.
Hafnia chief executive Mikael Skov said the initiative is part of the company’s strategy to “support and promote industry decarbonisation while still transporting the resources necessary to sustain the world”.
Mr Skov said “We recognise the world is changing, and that the ways we operate and conduct business need to change with it. While there is much uncertainty as to exactly what the future will look like, we are confident that the steps we are taking have Hafnia, our stakeholders and the industry moving in the right direction.”
Hafnia said it believes the methanol produced at the facility will displace more carbon-intensive methanol supplies, such as coal-based methanol, resulting in reduced greenhouse gas (GHG) emissions. It will be used to produce materials including olefins, primary components used in numerous products including in protective medical equipment such as masks, gowns, gloves, and eye protection, as well as in recreational equipment, clothing, mobile phones and furniture.
In addition, NWIW will offset 100% of its GHG emissions from both direct and indirect sources within Washington state. Hafnia said the total investment in the project is in excess of US$2Bn.
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