Freepoint Commodities Inks Deal for Biomethanol Offtake from Emvolon

Stamford, Conn.-based merchant trader Freepoint Commodities has entered into a seven- year biomethanol offtake agreement with Emvolon, a Massachusetts Institute of Technology spinoff, Emvolon said Thursday.

Under the $450 million agreement, Freepoint will have the first purchase option for biomethanol and other liquid fuels produced by Emvolon over the life of the deal. Freepoint will also provide project capital for future growth.

Emvolon has targeted production to reach 300,000 metric tons annually, enabling Freepoint to deliver fuel throughout its global physical distribution network on a commercial scale.

Methanol represents a $40 billion market and is expanding globally across maritime, heavy transport, specialty chemicals, and newly approved sustainable aviation fuel as a means of decarbonization, according to Emvolon.

“Driven by global supply deficits for cost-competitive low-carbon fuels, RED-II-compliant biomethanol is trading at a premium exceeding $1,000 per metric ton,” the company said. “By producing low-cost liquid commodities directly at emission sites, Emvolon’s modular economics deliver attractive commercial margins independent of shifting policy environments.”

Emvolon was founded in 2021 and headquartered in Woburn, Mass. The company’s proprietary technology converts waste gases from landfills, dairies, wastewater treatment facilities and industrial flare gas into sustainable fuels and chemicals, including methanol, at the source of waste.

Reporting by Tom Sosnowski, tom.sosnowski@dowjones.com; Editing by Erik Papke, erik.papke@dowjones.com