Houston-based HyOrc Corporation, a clean energy corporation focused on decarbonizing heavy industry and Portugal’s Start Lda, liquid and gaseous fuels trading company, have announced that their green methanol joint venture has secured an offtake agreement with a “significant European renewable fuels producer” for the entire output of their planned green methanol pilot facility.
Such an agreement is key to encourage investment in emerging fuels that can move the shipping industry toward international emissions reductions requirements. The shipping industry contributes about 3% of global CO2, mostly through burning fossil fuels. Green methanol is made with hydrogen–created using renewable energy–and methane from biomaterials. Green methane can significantly reduce emissions and environmental harm compared to conventional shipping fuels so long as the biomaterials to make the methane are not sourced through deforestation or rely on food crops.
This non-binding, 10-year offtake agreement is pending the finalization of a definitive Term Sheet, which represents the immediate next step in formalizing the long-term relationship. The company said this commitment immediately validates the company’s vertically integrated approach and its position in the rapidly expanding marine fuel market.
The company further confirmed it is engaging in co-funding, investment, and large-volume off-take discussions with multiple leading global energy traders and international shipping lines regarding the full-scale expansion phase. These firms have confirmed long-term off-take interest for volumes in the millions of tons of green methanol per annum, and key strategic partners have expressed intent to invest once the pilot facility is operational.
“Securing this long-term commitment from a major European producer provides essential revenue assurance, and the simultaneous engagement with multiple global industry leaders demonstrates that our asset-backed approach is not only technically sound but commercially derisked for rapid scale,” said Richard Oblath, non-Exec Director of HyOrc Corporation, and former Shell International Petroleum Company Vice President of M&A for its downstream business. “This commercial validation—from revenue assurance to expansion interest—positions HyOrc perfectly to finalize the key project financing pathways that will accelerate our transition to a major revenue-generating platform.”
The execution of these definitive agreements will unlock key project financing pathways, accelerating the partners’ transition from an R&D phase to a revenue-generating commercial platform.
