Product tanker major Hafnia Limited is planning to build methanol dual-fueled ships to transport methanol from a U.S.-based production plant at the Port of Kalama, Washington, USA.
As disclosed at the end of August, Hafnia, together with a joint venture partner, invested $10 million in Northwest Innovation Works methanol production plant.
The joint venture will be transporting one-third of the methanol produced on 19-year charter contracts.
In addition to investing in the methanol plant, the JV will be building the vessels transporting their share of the methanol, the company said.
“This initiative is another example of our strategy to support and promote industry decarbonization while still transporting the resources necessary to sustain the world,” said Hafnia CEO Mikael Skov.
“We recognize 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’re confident that the steps we’re taking have Hafnia, our stakeholders and the industry moving in the right direction.”
The investment will be used to develop a 3.6 million tonnes per annum methanol production and export facility.
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.
The facility aims to replace coal-based methanol production by introducing ultra-low-emissions and zero liquid discharge technologies.
It will produce materials, including olefins, the primary components in numerous products, including medical devices, recreational equipment, clothing, cell phones, and furniture.
The total project investment stands at over $2 billion.
Hafnia operates a fleet of 178 vessels in pools including newbuilds, of which 103 are owned or chartered-in.