Decarbonizing Maritime Transport

Hydrogen Economy is the largest value accretive opportunity for OCI OCI opportunities: ammonia and methanol are the only hydrogen carriers capable of decarbonizing our key sectors Growth in hydrogen demand driven key OCI sectors¹ EU to invest >€1 tn by 2030 US announces a $2tn Climate Change Bill 10x green H₂ 2020 2030 2040 2050 Ammonia and methanol form ~50% of grey hydrogen use and are key products in achieving a green hydrogen economy Blue/Green ammonia +1 Power generation Transportation Global GHG emissions Building heating and power Agriculture 20% Industry energy Enabler for low carbon farming New A Fuel 10% feedstock uses Existing feedstock uses No CO2, SO, or particulate emissions upon combustion Conventional Decarbonized Needs less refrigeration Bio / Green methanol (-33°C NH3 vs -253°C H₂) Green feedstock for chemicals and low-cost solution to transport H₂ 70% higher energy density than H₂ Effective and easier to handle than H₂ Cleaner burning low carbon fuel in marine transport. Widely used in road transport Efficient and promising green feedstock for chemicals in many end- markets 84% higher energy density than H₂ Production cost of hydrogen expected to come down rapidly $/kg H₂ Feedstock or energy carrier 30% 6 -25% 1 Renewable energy electricity cost declines 5 2 4 -25% Electrolyzer capital cost declines 32 T -10% 3 Other: efficiency and O&M improvements 1 0 2020 Green Blue Optimal green² Natural gas or renewable H2 sources H2 800-1 OCI 2030 2040 2050 I Ⓡ Food Ainu Fuel Feedstock 1. Grey H₂: produced via fossil fuels such as natural gas. Blue H2: natural gas is split into H2 and CO2 either by Steam Methane Reforming or Auto Thermal Reforming; CO2 is captured and stored (Carbon Capture Storage or CCS). Green H₂ produced by splitting water by electrolysis which uses power from renewable energy sources such as wind and solar. Biomass can also be used to produce green H2. This produces only hydrogen and oxygen, with no negative CO2 impact. 2. Optimal green refers to green ammonia produced using wind/solar energy in the Middle East OCI Source: Hydrogen Council, McKinsey 26

View entire presentation