CAIRO - 4 October 2023: Egyptian Prime Minister Mostafa Madbouly witnessed Wednesday the signing ceremony of the framework agreement to establish a project to produce green fuel with investments amounting to $3 billion for the first phase, for ship bunkering supplies and achieving zero carbon emissions.
Taking place at the Council of Ministers headquarters in the New Administrative Capital, the ceremony was between the General Authority for the Suez Canal Economic Zone, the Sovereign Fund of Egypt, the New and Renewable Energy Development and Utilization Authority, the Egyptian Electricity Transmission and Distribution Company, and the “Egyptian Electricity Transmission and Distribution Company.
The attendees included: Dr. Mohamed Shaker, Minister of Electricity and Renewable Energy, and Dr. Hala Al-Saeed, Minister of Planning and Economic Development, and a number of officials from ministries and agencies also attended. concerned and company officials.
The agreement was signed by Walid Gamal El Din, Chairman of the General Authority for the Suez Canal Economic Zone, Ayman Soliman, Executive Director of the Sovereign Fund of Egypt, Engineer Sabah Mashaly, President of the Egyptian Electricity Transmission Company, Dr. Mohamed El Khayyat, Chairman of the New and Renewable Energy Development and Utilization Authority, and Brian Davis, the CEO of C2X, which was recently established as an arm of A.P. Moller Maersk, with the aim of establishing projects to produce green methanol and its derivatives.
Following the signing, the Prime Minister confirmed that the Egyptian state, under the leadership of President Abdel Fattah El-Sisi, continues to strive at a rapid pace to expand the field of clean energy to produce green hydrogen and its derivatives.
The state is working to implement projects to produce and use green methanol and green ammonia, in order to serve the ship bunkering sector in particular, thanks to Egypt’s distinguished location and unique capabilities that make it a leader in this sector, he said.
The Chairman of the General Authority of the Suez Canal Economic Zone stated that today’s agreement is the tenth framework agreement within the memorandums of understanding signed by the economic zone. He signed a memorandum of understanding with the international company “Maersk” last March, stressing that the economic zone aims to transform the green economy and its various industrial applications, such as: the green fuel industry, which is one of the most important sources of clean energy in the world, pointing to the components of the economic zone in the integration of its ports with the regions. The affiliated industrial sector, in addition to the infrastructure for hydrogen projects, most notably the region’s presence within the Green Corridor sites, and what the region is currently implementing is the implementation of the utility corridor - one of the green fuel delivery routes - after the completion of its manufacturing stages within the industrial facility and its storage operations, then transporting and exporting it to the port in preparation for its arrival to the markets. All European.
Walid Jamal El-Din added that the project, for which the framework agreement was signed, the first phase of which aims to produce 300,000 tons annually of green methanol, and to reach one million tons annually of green methanol with the completion of the final stages of the project, due to the project site’s capabilities that qualify it for that, pointing out that The details of the project were discussed with the group’s senior management officials during the visit of the Economic Zone delegation to Copenhagen in mid-September.
In turn, Brian Davis, CEO of C2X, said: This agreement is a milestone step in our endeavor towards the global transition to green fuels, as Egypt has many natural advantages that support the world-class green methanol project, including access to Renewable energy sources of excellent quality, with the Suez Canal being the most important global trade channel, and the signing of the framework agreement today represents another important milestone in achieving our ambition to become a leading producer of green methanol.
The company official thanked the Egyptian government, and the partners from Egyptian government bodies and agencies that are parties to the agreement for their continued support, expressing his aspiration to work with them to make “our project a success, which we can all be proud of.”