Consortium signs MoU for the development of a green methanol facility in Egypt

Consortium signs MoU for the development of a green methanol facility in Egypt

AD Ports Group, a prominent facilitator of global trade, logistics, and industry, has signed a Memorandum of Understanding with Transmar, a leading container shipping line and terminal operator in the MENA region, and Orascom Construction, a renowned global engineering and construction contractor. The MoU outlines the development of a green methanol storage and export facility, aiming to supply low-carbon fuel for maritime transport and establish clean alternative energy storage solutions worldwide.

Green methanol is a synthetic fuel produced renewably and without polluting emissions, primarily derived from green hydrogen. It serves as a low-carbon liquid fuel and presents a promising alternative to fossil fuels, particularly in sectors where decarbonisation is challenging.

Compared to fossil fuels, green methanol offers several benefits. It burns cleanly, producing less and non-toxic emissions. Being a liquid, it is easier, safer, and more cost-effective to store, transport, and handle, utilising existing infrastructure. Additionally, it is a highly efficient and versatile fuel, produced from renewable feedstocks such as renewable hydrogen and biomethane. Beyond the maritime industry, green methanol can also aid in decarbonising other hard-to-abate sectors, including chemicals and plastics.

The establishment of this facility will provide bunkering solutions for mainliners operating green methanol-powered vessels, aligning with AD Ports Group’s decarbonisation strategy and its expansion into clean energy liquid bulk storage. Industry projections suggest that over 100 methanol-fuelled ships will be in service by 2026, creating a demand for approximately one million tonnes of methanol. According to Drewry and Clarksons, the methanol-fuelled vessel fleet is expected to grow from 2 percent to 14 percent of the global fleet based on current orders.

Captain Ammar Mubarak Al Shaiba, CEO of the Maritime & Shipping Cluster at AD Ports Group, remarked, “By signing this MoU with Orascom Construction, who have extensive international experience in bulk liquid terminals for methanol storage, and Transmar, who possess decades of regional expertise in terminal operations, AD Ports Group and its subsidiaries are making a significant step towards a sustainable energy future. This initiative aligns with the UAE’s decarbonisation goals and accelerates the energy transition in shipping, positioning us at the forefront of the green hydrogen revolution and enabling us to contribute to global environmental stewardship and economic diversification.”

The move aligns with the International Maritime Organisation’s greenhouse gas strategy, which aims to decarbonise international shipping by 2050. According to the International Renewable Energy Agency, green hydrogen-based fuels will be crucial in this transition. Consequently, global demand for green methanol is projected to rise to four million tonnes annually over the next five years, driven by current sector orders.

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28 May 2024