Following Maersk, OCI Global has once again achieved the world's first green methanol deal with a feeder carrier

OCI Global, a global producer of nitrogen, methanol and hydrogen, has announced an agreement with X-Press Feeders to supply green methanol fuel for its branched-line container ships in the Port of Rotterdam.

OCI said the landmark agreement marks the world's first green methanol deal with a feeder carrier and the company's second green methanol deal in the maritime sector, following an agreement with Maersk to supply fuel for the world's first methanol-powered container ship.

X-Press Feeders has ordered a total of 14 dual-fuel vessels capable of using green methanol. The vessels, comprising eight 1170-TEU vessels and six 1250-TEU vessels, will be delivered in 2024 and 2025.

"The collaboration between the world's largest green methanol producer and the world's largest public feeder operator will create an end-to-end solution for Global shipping companies in European ports," OCI Global said in a statement.

Starting in 2024, OCI's OCI HyFuels subsidiary will distribute green methanol fuel to X-Press Feeders vessels using a converted Unibarge refueling barge from the Port of Rotterdam. OCI and Unibarge agreed earlier this year on the conversion of the barge not only to green methanol fuel delivery, but also the ships themselves to use alternative fuels.

The announcement comes as the International Maritime Organization (IMO) has agreed to revise its greenhouse gas reduction strategy for the shipping industry to achieve net zero emissions "by around 2050."

Bashir Lebada, CEO of OCI Methanol/OCI HyFuels, said the agreement with X-Press Feeders marks another milestone in the decarbonization of the Marine fuel industry, "with increasing public and regulatory pressure on the shipping industry, We need to find ways to decarbonize every link in the chain. Through our new partnership with X-Press Feeders to provide them with OCI Hyfuels green methanol, and our existing collaboration with Unibarge to deliver fuel via their green methanol refuelling barge, we are creating an end-to-end decarbonisation solution for the European maritime industry."

Shmuel Yoskovitz, CEO of X-Press Feeders, which has set a goal of achieving net zero emissions by 2050, said: "X-Press Feeders' partnership with OCI and the procurement of green methanol is the next logical decision on our path to net zero carbon decarbonisation by 2050." "In the second quarter of 2024, we will receive the first of 14 dual-fuel methanol vessels, and the early procurement of green methanol allows us to provide the capacity for mainline operators and interested European benefit shippers to deliver the green corridor within Europe by mid-2024." This is another step in demonstrating X-Press Feeders' commitment to making a tangible contribution to a more sustainable shipping industry."