AD Ports Group, the operator of industrial cities and free zones in Abu Dhabi, in the United Arab Emirates is spearheading a consortium to develop a green methanol plant in Egypt.

Green methanol, made from biomass such as plant waste, is a synthetic fuel produced renewably and without polluting emissions (in theory), 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.

Green, Blue and Grey Methanol – what’s the difference in fuel types?

Green methanol (or bio-methanol) may be produced via biological pathways (anaerobic digestion), thermo-chemical pathways (gasification) or electrofuel pathways (power to gas). Blue methanol is made using blue hydrogen in combination with carbon capture technology. Grey methanol is produced using natural gas.

The new Egyptian facility will aim to supply low-carbon fuel for maritime transport, presenting an opportunity to establish clean alternative energy storage solutions globally.The addition of a facility in this area will provide fueling solutions for those mainliners who have ordered green methanol-powered vessels.

One challenge with Egypt and the Suez Canal, currently, is keeping terrorists such as the Yemenite Houthis terror group from sabotaging its shipping line from the Indian Ocean to the Red Sea to the Mediterranean. Working with the moderate UAE will help broker peace in the region. The UAE even has a Green Sheikh who was a regular contributor to Green Prophet over the years.

According to Abu Dhabi’s AD Ports they anticipate more than 100 methanol-fuelled ships will be in service in the next 2 years by 2026, representing around a million tonnes of additional methanol demand.

According to Drewry and Clarksons, a maritime research group, the methanol-fuelled vessel fleet will grow from 2 per cent to 14 per cent of the global fleet based on orders already placed.

“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,” said Ammar Mubarak Al Shaiba, CEO – Maritime & Shipping Cluster, AD Ports Group.

Developing carbon-friendly projects in other nations can earn countries carbon credits through UN mechanisms.

The group has signed a preliminary agreement with Egyptian container shipping line Transmar and Orascom Construction for the project, which will include storage and export facilities for the synthetic fuel.

Green methanol, a low-carbon synthetic fuel, can be produced from biomass or through carbon capture and green hydrogen. It offers a sustainable alternative to fossil fuels, especially in sectors like chemicals and plastics where decarbonization is challenging.

This fuel is also more cost-effective to store and transport, utilizing existing infrastructure for regular fossil fuels.

Maersk and Hapag Lloyd are already integrating such green methanol ships into their fleets. Evergreen, Cosco, CMA CGM and HMM have ships on order, according to Bloomberg.

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