Abu Dhabi’s largest holding company, ADQ and the UAE’s leading investment firm and a subsidiary of IHC, Alpha Dhabi Holding have announced a $375 million investment in the Netherlands-based OCI’s methanol business which will allow for hydrogen-based growth.
As part of the deal, the two companies will be offered a 15 percent stake in OCI Methanol Group, and it will be incorporated as an Abu Dhabi Global Market (ADGM) company.
Methanol is a key enabler of the hydrogen economy and it will be a major fuel to decarbonizing the marine industry. The partnership will focus on clean methanol as a “fuel for the future” with hydrogen as the primary feedstock.
OCI is also a shareholder in Abu Dhabi’s Fertiglobe, the nitrogen fertilizer company in which Abu Dhabi National Oil Company, ADNOC is another shareholder. Fertiglobe recently completed a successful IPO and is listed on Abu Dhabi Securities Exchange (ADX).
“This strategic partnership further solidifies Abu Dhabi’s position in the global arena as a key player in the industrial and chemicals space. We are dedicated to bringing top-tier international companies to the UAE in line with Abu Dhabi’s plans to create a world-class investment platform that will invest in and develop a portfolio of petrochemical manufacturing projects in Abu Dhabi.”
OCI Methanol has a globally diversified production, trading, and distribution infrastructure, with market-leading positions in the United States and Europe with a capacity of about 3 million metric tons. It is also the world’s first and largest producer of bio-methanol, which is produced in its methanol plants in the Netherlands and the US.
“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 Mr. Nassef Sawiris.
Mr. Hamad Salem Al Ameri, Managing Director and Chief Executive Officer of Alpha Dhabi Holding, commented, “We are pleased to partner with OCI, a global leader in methanol production, led by a highly talented management team and strongly positioned to capture rising global demand for clean fuel.”