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Sustainability
Today , making a lower carbon version of methanol or ammonia is more costly , whether this is the cost to capture carbon dioxide or to utilize renewable feedstocks that cost much more than fossil fuels . However , with economies of scale and time , the costs will come down as we have seen with so many other new technologies in the past like solar and wind .
In the short-medium term , the higher cost would need a green premium to justify it economically , and that is where regulatory support must come in to establish that premium . The IRA in the US , for example , has allowed global distributors and producers of low-carbon fuel alternatives to accelerate decarbonization projects thanks to the tax credits system supporting carbon sequestration . And on that basis , organizations like OCI can take the low-hanging fruit and move forward more quickly with less risk .
What we need now is for governments to provide the regulatory landscape and support through infrastructure and finance . There are markets opening today for low carbon fuel alternatives , and businesses need to focus on leveraging those markets where possible . We are already starting to see evidence of this in the fact that the only industries that have made any significant moves to cleaner versions are those that have been compelled by regulation – namely the fuels markets - first road transport , and soon marine .
3 . A steadfast commitment to manufacturing excellence
In addition to the longer-term decarbonization that can be achieved by investing in new technologies , manufacturing sites can and must ensure they continuously look for ways to maximize their production efficiencies and minimize emissions and waste , while maintaining health and safety records . Operational excellence is integral to optimizing energy efficiency , which in turn is necessary to minimizing scope 1 GHG emissions .
The path forward
Now is the time to take responsibility for our planet and its future generations . Already today , companies like OCI are making big strides toward supporting carbon neutrality . However , this can only be achieved with support by an ascribed regulatory value to lower carbon ammonia and methanol , which means that the public sector needs to be heavily involved to activate demand and shift it away from regular fossil fuels .
Manufacturers around the world need to have a unified message to policymakers on that front . OCI is optimistic that our industry can make this change – we just need to make the move together . We need to speak the same language , focus on the right goals , and focus on contributing to the hydrogen economy , creating a brighter future for our industry and society at large . ■
For a list of the sources used in this article , please contact the editor .
Hassan Badrawi www . oci-global . com
Hassan Badrawi is CFO of OCI Global , a global leader in nitrogen , methanol and hydrogen , driving forward the decarbonization of the energy-intensive industries that shape , feed and fuel the world . OCI ’ s production capacity spans four continents and comprises approximately 16.2 million metric tons per year of hydrogen-based products including nitrogen fertilizers , methanol , biofuels , diesel exhaust fluid , melamine , and other products . OCI has more than 4000 employees , is headquartered in the Netherlands and listed on Euronext in Amsterdam .
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