Norwegian developer signs $1.1bn deal to produce and supply green hydrogen-based methanol directly to ships in Suez Canal
Scatec plans to start up the project, capable of producing 100,000 tonnes of methanol, by 2027
Norwegian developer Scatec has signed a memorandum of understanding with Egypt’s Suez Canal Economic Zone to develop a $1.1bn green methanol plant that will supply marine fuel directly to ships at East Port Said on the Mediterranean coast.
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However, a timeline for final investment decision on the facility and start of construction has not been disclosed.
“East Port Said is the destination of the green bunkering project due to its location northern Suez Canal, and its integration with the ports of East Port Said and West Port Said, and therefore it is located near the ship’s waiting areas,” said Suez Canal Economic Zone chairman Waleid Gala El-Dien.
He added: “We emphasise that green bunkering is not a main target in itself, but an imperative global requirement, especially since shipping is responsible for 10% of the world’s carbon emissions, so the use of green fuels in maritime transport will significantly affect the reduction of carbon emissions.”
However, ammonia — the other hydrogen derivative often proposed for green bunkering — is currently off the table as a major shipping fuel owing to strict regulations both internationally for gas carriers and from port-to-port for all other vessels.
Scatec is also a partner on the Egypt Green hydrogen and ammonia project with Fertiglobe, majority-owned by chemicals firm OCI.