Hafnia and NW innovation works announce new partnership

Sep 17 2020

Northwest innovation works announces Hafnia’s investment in methanol export plant at the Port of Kalama in Washington, USA.

Northwest Innovation Works, Kalama, LLC (“NWIW”) is pleased to announce that Hafnia Limited (“Hafnia”) has made an investment in NWIW as well as agreed to transport one-third of the methanol produced via their ships.

NWIW will use the investment towards the development of a planned 3.6 MTPA methanol production and export facility at the Port of Kalama in southwest Washington, USA. The plant will convert regionally sourced natural gas to methanol, which will then be transported via ship for use in dedicated materials pathway production in Asia. Hafnia will also provide and operate purpose-built next-generation ships to transport one-third of the methanol volume produced by the facility.

NWIW’s Kalama facility is focused on providing an economically viable alternative to more carbonintensive global methanol supply such as coal-based methanol production for use in materials production in an environmentally sound way – redefining manufacturing standards through innovation and environmental sustainability for Washington State, and resulting in GHG reductions globally.

The methanol will be used to produce materials, including olefins, the primary components in numerous products, including medical devices, personal protective equipment such as masks, gowns, gloves, and eye protection, recreational equipment, clothing, cell phones, and furniture, among many other applications. In addition, NWIW will offset one hundred percent of its GHG emissions from both direct and indirect sources within Washington State.

Beyond these and other environmental highlights, including using ultra-low-emissions and zero liquid discharge technologies, the facility will contribute substantial economic benefits to the local economy. The total project investment of well over $2 billion will result in over 1,000 new construction jobs and up to 200 permanent direct family-wage jobs, as well as providing $30 to $40 million in annual tax payments paid to state and local governments during operations. Amidst the current unprecedented global health pandemic, the project will support meaningful economic recovery and growth in SW Washington, USA.

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