Following a prior announcement made in mid-July 2021, Methanex Corporation (TSX:MX) (NASDAQ:MEOH) (Methanex) and Mitsui O.S.K. Lines, Ltd. (TSE:9104) (MOL) have concluded definitive agreements for Methanex and MOL to establish a strategic partnership involving Methanex’s Waterfront Shipping (WFS) subsidiary. The definitive agreements are consistent with the previously announced Key Commercial Terms (Note 1), with MOL acquiring a 40 percent minority interest for US$145 million (Note 2).

The closing is subject to all customary conditions being met, including regulatory approval.

Methanol is a safe, proven, cost-competitive marine fuel for the commercial shipping industry that can meet current and future emissions regulations (Note 3). Through this transaction, Methanex as the world-leading methanol producer, WFS as the world’s leading methanol shipper, and MOL as the provider of multimodal shipping services will strengthen a relationship established over 30 years and advance the commercialization of methanol, including renewable methanol (Note 4), as a viable marine fuel.

Note 1 : For further details, please refer to the previous news release.

July 15, 2021 (Vancouver) / July 16, 2021 (Tokyo) “Methanex and Mitsui O.S.K. Lines Announce Agreement on Key Commercial Terms for a Strategic Partnership | Methanex Corporation”

Note 2:The final price will be subject to customary closing adjustments.

Note 3 : As a marine fuel, methanol can reduce sulphur oxides (SOx) emissions by up to 99 percent, particulate matter (PM) emissions by up to 95 percent, nitrogen oxides (NOx) by up to 80 percent, and CO2 emissions by up to 15 percent during combustion compared to conventional marine fuels. Also, methanol produced from renewable sources can reduce CO2 emissions by up to 95 percent.

Note 4 : Methanol is most commonly produced on a commercial scale from natural gas and coal. Methanol can also be made from renewable sources, such as municipal waste, biomass and recycled carbon dioxide.

Source: Hellenic Shipping News