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State holding companies Abu Dhabi ADQ and Alpha Dhabi Holding will invest $375 million in the methanol business of the Netherlands-based OCI N.V to develop methanol as a clean hydrogen-based fuel.
The UAE companies will receive a 15 percent stake in the OCI Methanol Group, which will be incorporated as an ADGM company in Abu Dhabi, Alpha Dhabi Holding said in a filing on Abu Dhabi Securities Exchange (ADX) where its shares trade.
The strategic platform will focus on clean methanol as a fuel for the future with hydrogen as the primary feedstock, and be a key to decarbonising the marine industry, the statement said.
"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," said OCI chairman Nassef Sawiris.
The transaction is expected to be finalised this year.
OCI Methanol, a producer of bio-methanol, has the capacity to produce approximately 3 million metric tons.
(Writing by Brinda Darasha; editing by Seban Scaria)
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