QNB, QAFAC Sign USD 80 million Loan Agreement for CO2 Recovery Plant

Doha, June 11 (QNA) - Qatar National Bank Group (QNB) and Qatar Fuel Additives Company Limited (QAFAC) signed on Wednesday a Corporate Loan Agreement for US $80 million to fund the establishment of the CO2 recovery plant, situated within Mesaieed Industrial City premise. The agreement was signed for QAFAC by Mr. Nasser Jeham Al- Kuwari, the General Manager of QAFAC, while it was signed for QNB by Mr. Ali Ahmed Al Kuwari, Executive General Manager and Chief Business Officer. This project will take approximately 2 years to complete construction and is expected to begin operation in 2014. The plant will capture CO2 from the combustion exhaust gas emitted in QAFAC s Methanol production process. In a press conference held following the signing ceremony, Mr. Nasser Jeham Al- Kuwari said QAFAC has the idea of capturing CO2 since years, noting that the company enjoys strong relationships with international partners that have the full technical expertise besides a large marketing network. Most of QAFAC's products are destined for export markets while a part is used in petroleum refinery industrial process in the Laffan Refinery, explained Al- Kuwari. The company is developing flue gas CO2 capture technology to combat global warming and upgrading its operations according to International Environmental Standards, he said. QAFAC seeks to minimize waste generation and maximize recycling and raise awareness about environment protection among employees and community, he added. Al-Kuwari outlined QAFAC's strategy toward East Asian and GCC market, emphasizing the company's international marketing policy and Qatar's strategic position in the region's energy market. For his part, QNB Executive General Manager said that establishing the new CO2 recovery plant aims at creating new economic sectors while enhancing the national economy's capacities to further grow. Funding this project is part of the Banking sector's role aimed at contributing positively on the development of the Qatari economy, he said. QNB is proud be a part of this world class CO2 recovery plant and this collaboration again demonstrates QNB s willingness to support corporate initiatives which will facilitate the protection of the environment. With the initiation of this project, QAFAC has shown a desire to be a leader in reducing industrial greenhouse gases and playing a front line role as an environmentally conscious company. QAFAC plans to recover 500 Tonnes/day of CO2, a Greenhouse Gas, from its Methanol Reformer stack and will inject this into its existing Methanol plant. Based in Qatar, QAFAC is a Petrochemical company which commenced operation in 1999 and is 50% owned by Industries Qatar (IQ). QAFAC is one of the leading companies in its field producing Methanol and Methyl Tertiary Butyl Ether (MTBE). QAFAC present production stands at 3000 tons of methanol and 1850 tons of MTBE per day. (QNA)