OCI NV, Amsterdam, on Nov. 22 reported that it has entered into a strategic alliance with ADQ and Alpha Dhabi Holding through the placement of 15 percent of the OCI Methanol Group. Consideration was US$375 million.
The unit will be incorporated as an Abu Dhabi Global Market (ADGM) company. OCI said the company will focus on clean methanol as a fuel for the future, with hydrogen as the primary feedstock.
OCI has been mulling its options for its methanol business for some time. It said the unit benefits from several strategic advantages as the only producer with facilities and extensive distribution and storage capabilities in the U.S. and Europe, which are located near major inland demand centers or on major global shipping lanes next to key bunkering hubs.
“This strategic partnership can accelerate the group’s position in the hydrogen economy,” said OCI Executive Chairman Nassef Sawiris. “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.”
“Following the successful experience of Fertiglobe including the IPO and successful partnership with ADNOC, we believe this new strategic partnership strengthens our commitment to Abu Dhabi as a future hydrogen hub,” said Ahmed El-Hoshy, OCI CEO. “Together with a world-class OCI Methanol team and benefiting from strong support from our partners, we can look forward to a successful enterprise.”
OCI’s production capacity spans four continents and comprises approximately 16.2 million mt/y of hydrogen-based products including nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid, melamine, and other products.
ADQ, established in Abu Dhabi in 2018, is one of the region’s largest holding companies, with direct and indirect investments in more than 90 companies locally and internationally. Alpha Dhabi Holding (formerly Trojan Holding), started in 2008, is one of the fastest growing holding companies in the Middle East, with investments and developments spread across various sectors, construction and real estate, hospitality, healthcare, and infrastructure, and transportation projects.
The transaction is expected to be finalized this year and remains subject to definitive legal documents.