January 7, 2025
Raw material producer Perpetual Next is issuing a tender for the future sales of bio methanol. Perpetual Next currently has several bio methanol production facilities in various stages of development. Each facility will have a production capacity of 220,000 tons per year. This will make Perpetual Next a leading player in the global bio methanol market. The tender aims to secure the offtake of its bio methanol - with suitable partners.
Global demand
Methanol is an important building block for the chemical industry. Methanol is currently mainly produced from fossil raw materials such as coal and natural gas. The global demand for methanol is currently approximately 100 million tons per year. The biggest share of use is by the chemical industry for the production of everyday products such as paint, plastics and pharmaceutical products. The global demand for bio methanol is increasing exponentially because this methanol is also the fuel of choice for decarbonization by the shipping industry.The first container ship sailing on bio methanol left South Korea already in July 2023. Several such ships are currently in development and it is expected that the number of these containers ships will exceed 200 by 2028.
Geographical distribution
Perpetual Next has production facilities for bio carbon that can be directly applied in the bio methanol production process. It aims for a leading position in the fast-growing and global bio methanol market. An important aspect in the tender for bio methanol is good geographical distribution. By issuing this tender, the company has therefore sent out a wide request to the market. It focuses on internationally operating commodity traders, shipping companies and end users from the chemical industry. The expectation is that the first agreements will be signed by mid-2025. The demand for bio methanol continues to rise globally, while production is lagging behind. This highest-quality application can be used for a much longer period of time, which is why Perpetual Next has secured locations for its bio methanol production facilities for at least 50 years. This vision aligns with signing long-term partnerships, which is the purpose of this tender.
Singapore
Perpetual Next has three bio methanol production facilities in various stages of development in Europe for which the tender has been issued, and it also has a facility outside Europe under development. Perpetual Next is thus building a strong position in the development of bio-based raw materials on several continents. In order to be able to take a global position, the organization is working with its potential partners on a strategic expansion to Asia. Perpetual Next is focusing on Singapore in particular for this purpose. This is a crucial hub for global shipping and has the potential to supply more than one million tons of low-carbon methanol annually by 2030, thus meeting the increasing demand for alternative bunkering.