Hafnia, a member of BW Group, is investing into Northwest Innovation Works (NWIW) together with a strategic joint venture partner.
The joint venture’s $10m investment will go towards developing a 3.6m tonnes per annum methanol production and export facility at the port of Kalama in southwest Washington, US.
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.
Hafnia said it will then provide and operate purpose-built, next-generation methanol dual-fueled ships to transport one-third of the methanol volume produced by the plant, with these vessels tied to 19-year charters.
“This initiative is another example of our strategy to support and promote industry decarbonisation while still transporting the resources necessary to sustain the world,” said Mikael Skov, ceo of Hafnia.
The NWIW Kalama facility will be focused on providing economically viable alternative to coal-based methanol production, redefining manufacturing standards for innovation and environmental sustainability for Washington state. The NWIW will offset 100% of its greenhouse gas (GHG) emissions from both direct and indirect sources within Washington state.
“We recognise 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,” Skov said.
Copyright © 2020. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.