- Strategic alliance positions the business for growth initiatives in hydrogen-based applications including fuel
- OCI Methanol Group to be based in the ADGM in Abu Dhabi
OCI N.V. (Euronext: OCI) today announces a strategic alliance with two leading global investors, ADQ and Alpha Dhabi Holding, positioning the OCI Methanol Group to pursue future growth initiatives. A 15% stake of the OCI Methanol group will be placed for a total consideration of $375 million. As part of the alliance, OCI Methanol Group will be incorporated as an ADGM company in Abu Dhabi.
The strategic platform will focus on clean methanol as a fuel for the future with hydrogen as the primary feedstock. OCI Methanol Group has been a pioneer in developing clean methanol, supplying clean methanol to blue chip customers in various industries including transportation. Methanol is a key enabler of the hydrogen economy and one of the most logical hydrogen fuels. Methanol will be key to decarbonizing the marine industry, and the strategic alliance enables OCI Methanol to drive and accelerate the transition to a hydrogen economy.
OCI Methanol Group benefits from several strategic advantages as the only producer with facilities and extensive distribution and storage capabilities in the United States and Europe, which are located near major inland demand centers or on major global shipping lanes next to key bunkering hubs.
Abu Dhabi-based Chimera Capital advised ADQ and Alpha Dhabi Holding in relation to their investment in OCI Methanol Group.
H.E. Mohamed Hassan Alsuwaidi, Chief Executive Officer of ADQ, stated “This strategic partnership further solidifies Abu Dhabi’s position in the global arena as a key player in the industrial and chemicals space. We are dedicated to bringing top-tier international companies to the UAE in line with Abu Dhabi’s vision and plans to create a world-class investment platform that will invest in and develop a portfolio of petrochemical manufacturing projects in Abu Dhabi.”
Mr. Hamad Salem Al Ameri, Managing Director and Chief Executive Officer of Alpha Dhabi Holding, commented: “We are pleased to partner with OCI, a global leader in methanol production, led by a highly talented management team and strongly positioned to capture rising global demand for clean fuel. We look forward to supporting the company’s growth initiatives in the UAE and abroad, and further strengthening the UAE’s position as a regional industrial hub.”
Mr. Nassef Sawiris, Executive Chairman of OCI N.V., commented: “This strategic partnership can accelerate the group’s position in the hydrogen economy. 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.”
Mr. Ahmed El-Hoshy, Chief Executive Officer of OCI N.V., added: “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. Together with a world-class OCI Methanol team and benefiting from strong support from our partners, we can look forward to a successful enterprise.”
The transaction is expected to be finalised this year and remains subject to definitive legal documents.