Egypt and Maersk’s C2X inked Wednesday a framework agreement to produce green fuel and its derivatives in the Suez Canal economic zone (SCZONE) with investments worth up to $3 billion for the first phase.
According to the deal, C2X will establish a green fuel production facility for ship bunkering services and decarbonization.
Egypt is currently ramping up its actions in terms of fulfilling its obligations of green transition, mainly in the energy sector. In line with its Vision 2030, Egypt has expanded in constructing clean energy projects that aim to produce and use green methanol and green ammonia, especially in the ship bunkering sector.
In its first phase, the facility is anticipated to produce 300 kilotons per annum of green methanol, with a targeted annual production of one million tons of green methanol upon its final stage.
The General Authority of Suez Canal Economic Zone, The Sovereign Fund of Egypt (TSFE), The New and Renewable Energy Authority (NREA), The Egyptian Electricity Transmission Company (EETC), and C2X signed the agreement in the presence of Egypt’s Prime Minister Mostafa Madbouly.
“This agreement is the 10th framework agreement within the Memorandums of Understanding signed by SCZONE as a MoU signed with APMM in March 2022. SCZONE aims to transform into a green economy and its various industrial applications, such as green fuel production, which is one of the most important sources of clean energy in the world,” said Chairman of the SCZONE Walid Gamal El-Dien.
He added that SCZONE has the capabilities when it comes to the integration of its ports with affiliated industrial zones, as well as the infrastructure for green hydrogen projects.
Gamal El-Din also emphasized the strategic location of the SCZONE within the green corridor sites and utility corridor, serving as a key green fuel distribution route. This comes after the successful completion of manufacturing and storage operations, facilitating export and shipping to European markets.
On his side, Brian Davis, CEO of C2X said that Egypt has many natural advantages that support a world-class green methanol project; including access to high-quality renewables and proximity to the Suez Canal as the most important global trade waterway.
“Signing the Framework Agreement marks another important milestone in realizing our ambition to be a leading producer of green methanol. We thank the Government of Egypt and our Egyptian Sponsors of authorities and parties of the Agreement for their continued support and look forward to working with them to make our project a success we can all be proud of,” Davis added.