Consortium Signs MoU for the Development of a Green Methanol Facility in Egypt

AD Ports Group, Transmar, and Orascom Construction, have signed an MoU for the development of a green methanol storage and export facility. This facility will aim to supply low-carbon fuel for maritime transport, presenting an opportunity to establish clean alternative energy storage solutions globally.

Green methanol is a synthetic fuel produced renewably and without polluting emissions, and can be produced from green hydrogen.

This chemical compound can be used as a low-carbon liquid fuel and is a promising alternative to fossil fuels in areas where decarbonisation is a major challenge.

As a fuel, green methanol has several benefits compared to fossil fuels. It is clean-burning and has less and non-toxic emissions. As a liquid, it is easier, safer, and cheaper to store, transport, and handle, as existing infrastructure can be used.

It is also a highly efficient and versatile fuel as it is produced from renewable feedstocks including renewable hydrogen and biomethane. Aside from the maritime industry, green methanol can help decarbonise other hard-to-abate industries, including chemical and plastics.

The addition of a facility in this area will provide bunkering solutions for those mainliners who have ordered green methanol powered vessels and is aligned with AD Ports Group’s overall decarbonisation strategy and expansion into clean energy liquid bulk storage.

Industry sources anticipate that more than 100 methanol-fuelled ships will be in service from 2026, representing around a million tonnes of additional methanol demand, and according to Drewry and Clarksons, the methanol-fuelled vessel fleet will grow from 2% to 14% of the global fleet based on orders already placed.

Captain Ammar Mubarak Al Shaiba, CEO – Maritime & Shipping Cluster, AD Ports Group, said: "By signing this MoU with Orascom Construction who have vast international experience in bulk liquid terminals for Methanol storage, and Transmar, who have decades of expertise in this region and within terminal operations, AD Ports Group and its subsidiaries are taking a significant step towards the sustainable future of energy.

"This initiative not only aligns with the UAE's decarbonisation goals but also 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."

In pursuit of the International Maritime Organization’s (IMO’s) greenhouse gas (GHG) strategy and regulations aimed at decarbonising international shipping by 2050, green hydrogen-based fuels are set to be the backbone of this shift for the maritime industry, according to the International Renewable Energy Agency (IRENA).

As such, global demand for green methanol is expected to increase to 4 million tonnes per year in the next 5 years based on current orders from the sector.