AD Ports Group to develop green methanol facility in Egypt

UAE-based AD Ports Group, Egyptian container shipping line Transmar and construction company Orascom Construction have agreed to build a green methanol storage and export facility in Egypt, targeting the growing demand for low-carbon fuel in the shipping industry.

PHOTO: Signing of MoU by AD Ports Group, Transmar, and Orascom to build a green methanol storage and export facility. AD Ports Group

Through this facility, the trio aims to provide crucial bunkering service for shipping lines that have ordered green methanol-powered vessels.

“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,” CEO of AD Ports Group Capt. Ammar Mubarak Al Shaiba said.

However, the companies have not disclosed the construction timeline of the project. They have also not revealed from where the green methanol will be sourced for this project.

The shipping industry is rapidly moving towards cleaner fuels, with industry estimates forecasting that over 100 methanol-fueled ships will be operational by 2026.

According to maritime research consultancy Drewry and Clarksons, the share of methanol-fueled vessels in the global fleet will rise from 2% to 14% by 2026, based on current orders.

 By Debarati Bhattacharjee

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