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Transmar, Orascom + AD Ports link up on green methanol export facility: Egypt’s Transmar and Orascom Construction inked an agreement with AD Ports Group to develop a green methanol storage and export facility in Egypt in a bid to supply low-carbon fuel for the maritime shipping industry, according to a statement. An investment ticket for the plant and a timeline for construction and operations were not specified.
Why is this important? Green methanol — produced from biomass, captured carbon, or green hydrogen — stands to slash emissions from shipping vessels by 60% to 95% when compared with conventional bunker fuels.
Demand is expected to rise: Some 100 methanol-powered vessels are expected to be in service by 2026 racking up to 1 mn tonnes in green methanol demand and methanol-powered vessels are set to represent 14% of the global commercial fleet based on current orderbooks, the statement notes citing data from Drewry and Clarkson.
And regulations are driving the push: International regulations — including the current International Maritime Organization’s greenhouse gas strategy currently being revised — are driving adoption of the clean fuel which could see demand reaching 4 mn tonnes a year within the next 5 years, the statement added.
Egypt is looking to establish itself as a green fuel hub: Egypt inked a USD 3 bn framework agreement in October with AP Moller Holding and AP Moller-Maersk-owned C2X for the production of green methanol and its derivatives at the Suez Canal Economic Zone (SCZone) and Maersk has been eyeing an acquisition of the 545 MW Zafarana wind farm in Egypt, with plans to use the power to produce green methanol for ships. The company looks to produce 300k tons of green methanol per year in the project’s first phase, with that figure ramping up to 1 mn tons by the conclusion of the project’s last phase. Norway’s Scatec and Alexandria National Refining & Petrochemicals Company (ANRPC) inked a USD 450 mn agreement last year to establish a green methanol plant in Damietta and Scatec inked a USD 1.1 bn agreement in February with SCZone to supply ships with green fuel in east Port Said.
