Egypt and A.P. Moller-owned C2X ink agreement for large scale green methanol production

C2X, a new, independent company backed by A.P. Moller Holding, A.P. Moller-Maersk’s majority owner, on Wednesday (4 October) said it signed a comprehensive Framework Agreement (FWA) with its Egyptian sponsors and partners to enable and accelerate large scale production of green methanol in Egypt.

C2X is aiming to build, own, and operate assets to produce green methanol at scale with A.P. Moller Holding as majority owner and A.P. Moller – Maersk as minority owner.

The Framework Agreement is deepening the partnership and joint efforts for C2X to establish the project, which is strategically located close to the Suez Canal, in collaboration with the General Authority for Suez Canal Economic Zone (SCZone), the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Sovereign Fund of Egypt for Investment and Development (TSFE).

The efforts will include the establishment of projects for generating green energy from wind and solar sources.

Brian Davis, Chief Executive Officer of C2X, said: “This is an important step forward for the global transition to green methanol. Egypt has many natural advantages that support a world class green methanol project including access to low-cost renewables and proximity to the Suez Canal and maritime customers.”

“Signing of the Framework Agreement today marks another important milestone in realising our ambition to be a leading producer of green methanol. We thank the Government of Egypt and our Egyptian Sponsors for their continued support and look forward to working with them to make our project a success we can all be proud of.”

Mr. Waleid Gamal El-Dien, SCZONE’s Chairman, said: “Today’s FWA is the 10th framework agreement within Memorandums of Understanding signed by SCZONE which aims to transform to a green economy and its various industrial applications, making use of its capabilities related to the integration of its ports with affiliated industrial zones.”

Manifold Times previously reported C2X announcing its plans to have an annual production capacity of more than three million tonnes by 2030.

C2X is majority owned by A.P. Moller Holding with Maersk as a 20% shareholder, together providing a solid foundation for the company. Maersk has the intention to source green methanol from C2X.

Related: A.P. Moller Holding, Maersk form firm to produce 3 million tonnes of green methanol by 2030

Photo credit: C2X
Published: 5 October, 2023