United Arab Emirates and partnership to build first methanol production facility
Abu Dhabi National Petroleum Company (ADNOC) has signed an agreement with Proman, the world's second largest methanol producer, to build the first methanol production facility in the Ruwais Industrial Complex area. "This will be the first methanol production facility in the United Arab Emirates and will be one of the most energy efficient and low emission plants in the world," said David Cassidy, CEO of Proman.
The infrastructure will be built by Abu Dhabi Chemicals Derivatives Company, a joint venture between ADNOC and Abu Dhabi investment and holding company ADQ, in partnership with Proman. "We are pleased to welcome Proman as a strategic partner as we develop the UAE's first domestic methanol production facility," said Sultan al-Jaber, Minister of Industry and Advanced Technology and ADNOC Group Managing Director and CEO.
The partnership will benefit from the value of ADNOC's investments in expanding its refining and petrochemicals business, in addition to Proman's expertise in building and operating methanol production facilities. "Joining Proman in its first investment in the UAE as a strategic partner in the project enhances our country's competitiveness and its position as a key global hub in the petrochemicals sector and underlines the attractiveness of the UAE as a distinct destination for attracting foreign direct investment," said Al-Jaber.
The partnership will enable the construction of a natural gas to methanol conversion facility with an annual production capacity of 1.8 million tonnes. "The facility embodies our strategic plans to diversify the energy mix," the sultan said. The future infrastructure will be one of the most energy-efficient industrial facilities in the world in relation to energy use, an element of great importance for the development of the Arab country's green transition to sustainable energy use.
The production of this versatile chemical is very likely to support the objectives of the Ministry of Industry and Advanced Technology to diversify the local economy and accelerate industrial development. "The project is a step in the group's strategy to contribute to diversifying the local economy, accelerating industrial growth and enabling local supply chains through the production of new chemicals," said Al-Jaber.
The facility is primarily aimed at meeting the growing domestic and international demand for this clean and versatile chemical, as it has recently become a highly sought-after source of low-emission fuel for nations. Strong global demand and interest in methanol as a clean, low-carbon fuel source is expected to increase significantly over the next decade, particularly in the emerging economies of Africa and Asia.
In fact, this material will also be used in the manufacture of a wide range of products. "Methanol, a key product in the chemical industry, is mainly used to produce other chemicals, such as formaldehyde, acetic acid and plastics. Methanol production has almost doubled in the last decade, with around 98 million tonnes produced per year," reported the International Renewable Energy Agency (IRENA).
The government has set a number of very ambitious targets for energy diversification, one of which is to generate 50% of energy based on the use of clean sources as part of its efforts to contribute to the development of a sustainable, low-carbon economy. In addition, the government has announced plans to invest more than $163 billion over the next thirty years.
