Abu Dhabi’s AD Ports Group, Transmar, a container shipping line and terminal operator in the MENA region, and Orascom Construction, a global engineering and construction contractor, have signed an MoU for the development of a green methanol storage and export facility in Egypt.
The facility will aim to supply low-carbon fuel for maritime transport. Thus, it will present an opportunity to establish clean alternative energy storage solutions globally.
What is green methanol?
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. Therefore, it is a promising alternative to fossil fuels in areas where decarbonisation is a major challenge.
Benefits of green methanol
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. It is also a highly efficient and versatile fuel as it is produced from renewable feedstocks such as renewable hydrogen and biomethane. Thus, 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. The facility aligns with AD Ports Group’s overall decarbonisation strategy and expansion into clean energy liquid bulk storage.
Growing demand
More than 100 methanol-fuelled ships are likely to be in service from 2026. This will generate around a million tonnes of additional methanol demand. According to Drewry and Clarksons, the methanol-fuelled vessel fleet will grow from 2 percent to 14 percent of the global fleet based on orders already placed.
Captain Ammar Mubarak Al Shaiba, CEO – Maritime & Shipping Cluster, AD Ports Group, said: “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.”
Green hydrogen-based fuels will be the backbone of a key shift for the maritime industry, according to the International Renewable Energy Agency (IRENA). This will be in pursuit of the International Maritime Organization’s (IMO’s) greenhouse gas (GHG) strategy and regulations aimed at decarbonising international shipping by 2050. Global demand for green methanol is likely to increase to four million tonnes per year in the next five years.
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