OCI forecasts rising demand for hydrogen fuels as a cleaner alternative for road and marine fuel applications.
Concluding its Annual Report, it notes demand from the European vehicle fuels markets continues to grow, with increased demand for direct blending of green methanol and bio-MTBE.
Ahmed El-Hoshy, CEO, said, “The use of methanol as a marine fuel is expected to start accelerating significantly from the second half of 2023, when the first large methanol-fuelled container vessels are scheduled for delivery. Incremental demand is potentially in excess of 3 million tonnes per year from the mid-2020s based on current orders, which is significant in a globally traded
market of around 30 million tonnes.”
Methanol demand is expected to rebound in 2023 on the back of China re-opening, also resulting in higher methanol-to-olefins (MTO) operating rates which have been low. However there are limited new methanol greenfield supply additions in the near-to-medium term, and it expects expect tighter methanol market fundamentals to 2027.
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