Sabic today signed an agreement in Tokyo with Japan Saudi Arabia Methanol Co. (JSMC), a consortium led by Mitsubishi Gas Chemical, renewing the companies’ partnership in Saudi Methanol Co. (Ar-Razi) for another 20 years until 29 November 2038. Under the terms of the agreement, which was approved by regulatory authorities, Sabic will raise its stake in Ar-Razi to 75%, reducing JSMC’s shareholding in Ar-Razi to 25%. JSMC will pay $1.35 billion to Sabic for renewing the joint venture (JV) partnership, which Sabic will use to finance the refurbishment of Ar-Razi’s existing methanol plants or establish new facilities, the company says. The payment will be made in equal instalments over a period of three years.
By concluding the agreement, Sabic will become an equal co-owner with JSMC in a new, highly-efficient methanol production technology, which will be commercialized inside or outside Saudi Arabia, Sabic says. “Ar-Razi is the first joint venture in Sabic’s history and one of the most successful partnerships that the company has had for over 40 years,” said Yousef al-Benyan, Sabic CEO, at the signing.
Ar-Razi was established in 1979 as a 50/50 JV between Sabic and JSMC with the aim of developing, establishing, owning, and operating a methanol complex. Ar-Razi operates five methanol plants at Jubail, Saudi Arabia, with a combined capacity of 4.85 million metric tons/year, according to IHS Markit data.
By Natasha Alperowicz
Source: Chemical Week
France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).
The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.
At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?