Washington State may soon be home to a new methanol plant. File Image / Pixabay
Tanker owner Hafnia has formed a joint venture investing in a methanol production facility in Washington, the company said Monday.
Hafnia and another unnamed company will jointly invest $10 million into Northwest Innovation Works, a company seeking to build a 3.6 million mt/year methanol production and export facility at the Port of Kalama in Southwest Washington.
Hafnia and its partner will also produce and operate duel-fuel carriers capable of running on the methanol produced at the plant, to be tied to 19-year charters to transport a third of the plant's product. The plant will produce methanol using natural gas.
Methanol is one of the possible alternative fuels being proposed as a future fuel for the shipping industry as it seeks to eliminate its greenhouse gas emissions. But conventionally produced methanol using natural gas as a feedstock will not sufficient emissions savings for the longer term -- to comply with the International Maritime Organization's GHG strategy for 2050, it will need to be produced using biogas or hydrogen made using renewable electricity.