Egypt sets its sights on methanol supply

The MoU, signed in conjunction with Transmar and Orascom Construction, will aim to supply low-carbon fuel for maritime transport, presenting an opportunity to establish clean alternative energy storage solutions globally.

“By signing this MoU with Orascom Construction and Transmar, AD Ports Group and its subsidiaries are taking a significant step towards the sustainable future of energy,” said Captain Ammar Mubarak Al Shaiba, CEO – Maritime & Shipping Cluster, AD Ports Group.

“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.”

Better supply

The addition of a facility in this area will provide bunkering solutions for those mainliners which 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.

As a fuel, AD Ports is opting for green methanol because it said it 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.

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.

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.